Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.
For Thine is the kingdom and the power and the glory, forever and ever. Amen †
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✝️ Lord, thank You for the day. Amen.
Mortgage Interest Rates and Home Prices
Interest rates affect the prices of single family dwellings in these ways:
When mortgage rates fall, home prices rise as the lower monthly payments on the mortgages create higher demand for homes.
When mortgage rates rise, home prices tend to fall since fewer people can afford the monthly payments, reducing demand.
The shift in prices is typically a delayed affect because many sellers will delay changing prices for some time, trying to hold out until things improve from their standpoint. You see this happening with used cars and dealers’ rising inventories. Eventually, the prices will have to fall in order to move product, whether homes or cars. Car dealers wholesale the used cars in bulk when they can’t move them any other way.
Mortgage rates have an INVERSE RELATIONSHIP with the prices of homes. Reduced prices for homes reduces homeowners’ equity across the market. Home equity is not permanent, but fluid in relation to the economic environment at the time.