Rising Rates Could Get Buyers Moving
Ironically, it could be rising interest rates that finally push home buyers off the fence and into the market.
While Congress is debating the tax-cut compromise, the financial markets have interpreted the proposal as a development that will likely push mortgage interest rates higher than they have been for months.
Analysts are predicting that buyers will move quickly when it looks like rates are going up and are unlikely to come down. “Once people see this might actually be the bottom, they’ll go for it,” says Paul Dales of Capital Economics.
The average rate for a 30-year fixed loan increased to 4.61 percent in the week ended Thursday, Dec. 9, from 4.46 percent the previous week. The average 15-year rate rose to 3.96 percent from 3.81 percent.
Source: Fortune, Nin-Hai Tseng (12/10/2010)