The media seems to be consumed with the topic of rising mortgage interest rates. In truth, as mortgage rates have risen the last couple weeks of June, they have reached their highest level in two years.
To provide a sense of clarity and perspective, let's explore what the likely effect of rising mortgage interest rates will be on the Capital Region real estate market.
One of the benefits to rising mortgage interest rates is we will likely see an increase of first time home buyers enter the market who have previously been reluctant to enter the market hoping interest rates will move lower. Of course, the largest home buyer segment of any real estate market is typically first time home buyers. As more first time home buyers enter the market and buy houses, this will, in turn, cause those sellers to then become "move up" buyers as they transition from one home to the next. It is at that point that we may see the tide of the entire market rise overall.
For a broader perspective on this topic, feel free to watch the video to the right and also be on the lookout for the July 2013 Coldwell Banker Prime Properties Market Snap Shot which will give greater insight to the real estate landscape here in the Capital Region.