Mortgage Rate Increase: One Thing Every Homebuyer Needs to Know
Orange, California (PRWEB) July 18, 2013 -- Broadview Mortgage has reported that interest rates have increased as of July 17th, 2013. With an increase in rates, the 2013 real estate market has brought with it yet another layer of complication for home buyers.
"Many buyers are frustrated and on the verge of giving up the dream of homeownership." says Scott Schang, a branch manager for Broadview. "The one thing I would advise each and every homebuyer to do is be patient."
As interest rates increase, the amount of people who qualify to purchase a home tends to decrease. This is due to them being able to afford a lower price point. With fewer buyers in the market looking for a home, the theory is that it will free up inventory.
"We've seen people who initially qualified for $350,000 drop down to $275,000." says Schang. "Now you have an entire group of people who can no longer afford a $350,000 house. This is potentially good news for people who enter the market at that price point because competition won't be as aggressive."
Interest rates increased when Chairman of the Federal Reserve Ben Bernanke announced that they were going to "slow down" on the purchase of mortgage backed securities. This immediately sent interest rates into an upswing.
John Krochman, Broadview Mortgage, http://www.FindMyWayHome.com, 714-538-4404, [email protected]
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