Mission De Los Arroyos Report Archives - July 2004

What happens to the real estate market when interest rates rise?

When interest rates decrease, homes become more affordable allowing more people to enter the market, which in turn, causes home sales to increase. 

Conversely, when interest rates rise, home sales tend to slow down. Of course, there are other factors that influence the real estate market - such as job security and consumer confidence.  Remarkable growth in the job market over the last few months and a two-year high point in consumer confidence are good indications that the market will continue for a while longer. 

So, even thought interest rates are rising, they're still at almost record lows.  In other words, it's not too late to take that next step and move up to your dream home. 

If you're considering a move, call me.  I help people just like you realize their real estate dreams.