March 2, 2017

Impact of home values due to Mortgage Rates in 2017

Mortgage interest rate increase in 2017

There is no doubt that historically low mortgage interest rates were a major impetus to housing recovery over the last several years. However, many industry experts are showing concern about the possible effect that the rising rates will have moving forward.

The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are all projecting that mortgage interest rates will move upward in 2017. Increasing interest rates will definitely impact purchasers and may stifle demand.

In a recent study of industry experts, “rising mortgage interest rates, and their impact on mortgage affordability” was named by 56% as the force they think will have the most significant impact on U.S. housing in 2017. If rising rates slow demand for housing, home values will be impacted.

To this point, Pulsenomics, recently surveyed a panel of over 100 economists, investment strategists, and housing market analysts, asking the question “In your opinion, at what level will the 30-year fixed rate mortgage rate significantly slow home value appreciation?” The survey revealed the following:

Interest rates affect home value

Bottom Line

Most experts believe that rates would need to hit 5% or above to have an impact on home prices.

Sept. 30, 2016

Is The Lack of Existing Home Availability Increasing Sales?

Here are the highlights:

  • Inventory of existing homes is 10.1% lower than last year.
  • Despite a strong demand by buyers, lower home inventory helps explain why there is a modest increase in home sales. 0.8% year-over-year.
  • The price of existing homes show an increase of 5.1% year-over-year. That is directly related to the lack of available homes.
Sept. 29, 2016

Home Sales Expected to Increase

According to projections by Fannie Mae, the National Association of REALTORS®, Freddie Mac, and The Mortgage Bankers' Association, home sales will increase nationally in 2017.

Each organization is estimating increases for 2017. See the graphic below to view the projected sales by each of the entities.

If you have considered selling your home, now might be the right time to put it on the market. 

Posted in Market Reports, Sellers