Friday, July 12, 2013

Home Buyer’s Reaction to Mortgage Rates Spike

During the peak summer home-buying season, macroeconomic factors have shaken things up a bit. Federal Reserve Chairman Ben Bernanke announced a tapering of bond buying if the economy continues to improve, and the markets reacted. Last Friday, June 21, saw an especially steep spike with interest rates jumping from 3.9 to 4.5 percent. Naturally, Redfin was paying especially close attention to the numbers that indicate homebuyer demand over the weekend to gauge the reaction. In short, there was nothing dramatic.
The number of people making offers on homes increased 4 percent over the weekend, compared to an average of the prior three weekends. There was a 1 percent increase in customers making offers. This indicates that people farther along in their home search accelerated in an effort to lock in a rate. However, new customers contacting Redfin dropped 11 percent when comparing last weekend to the average of the prior three, indicating that people just starting the process might be deterred.
More from the Wall Street Journal and Redfin CEO, Glenn Kelman
rising interest rates and rising offers
rising interest rates and rising tours
rising interest rates and slowing initial contacts

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About Me

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I am a 25-year hospitality professional turned real estate broker and investor. Originally from Louisville, Kentucky, I have been blessed to live in some amazing places during the course of my career. Key Largo, Florida and Sea Island, Georgia, Southern California, Upstate New York, and numerous locales throughout the Midwest are just a few of the places I have called home. I have made Wilmington my home since 2002 and turned a passion and love of real estate into my vocation. I have been an active real estate investor for eleven years. I have purchased, rehabbed and sold dozens of homes over the course of my real estate career. Over the past three and a half years, I have dedicated myself to the practice of general brokerage. I am a REALTOR with Keller Williams Realty and offer traditional sales and marketing for buyers and sellers. I also offer consulting services to other investors. I am a past Board Member of the Coastal Carolina Real Estate Investors association. Whether for retirement, professional relocation, lifestyle changes, or investment, I have the local knowledge and aptness to help you achieve your real estate goals.
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