Rising Mortgage Rates Will Help WNY Real Estate
Rising mortgage rates will help the housing market. You probably are scratching your heads and wondering how this can be. Well most of the decisions we all make are based on facts and perceptions. Perception and a person’s gut, ultimately formulates our ability to make that final decision.
Read Also: What do you think of the Housing Resuce Bill?
Every day we drive by our local service stations and are reminded how expensive a gallon of gasoline has become. We are constantly reminded how bad things have become by our local and national media. Our groceries are costing us more. We are doing less traveling. We are even making decisions not to run out for one errand, but to rather plan out multiple errands to conserve gas. Gas prices are affecting every facet of our lives. Which, in turn, has had an effect on our mindset and perception that this might not be the right time to purchase a home.
Read Also: How Fallout Could Affect Main Street
So you are probably wondering how could rising mortgage rates help Western New Yorkers. The Fed recently indicated that they will not be lowing rates and will probably hold firm. This is a good sign that further aggressive stimulation to the economy is not warranted. As the market accepts stable or increasing rates, it begins to strengthen the value of the US dollar, which in turn puts pressure on lowering the price of oil. The lowering of the price of gasoline in turns drives down the cost of everything we do. This in turn will positively change our perceptions.
The media’s need to fill the 24-hour news cycle and their lust to report the negative over the positive will cause our change in perception to be a slow and gradual process. Remember how we were constantly updated on the rising cost of oil? Can you recall the last time your heard about the sudden drop in the price of oil?
Read Also: Documents to gather before meeting with your Niagara Falls Mortgage Professional.
So, when you drive by your service stations and gas is no longer over $4 per gallon and rising, but rather we see $3 and lowering! Rest assured, that new mortgage rates might be pushing upwards. When the media will puts a negative spin on rising mortgage rates…do not listen to them, this is a good thing…. your gut will tell you.
Contact Sam directly:
If you enjoyed this Buffalo Real Estate article, make sure you subscribe to my RSS feed! Daily updates to home sales market reports, homes for sale and helpful buying and selling articles are regularly posted on Buffalo Real Estate News. Colleen Kulikowski and the Best Buffalo Homes team of Keller Williams Realty is here to assist you with all of your home buying, selling and investing needs. Just call us today at (716) 650-0051!
The property information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.