Do Potential Interest Rate Changes Match Buyer Expectations?
Homebuyer confidence increased during the third quarter of 2013 but most homebuyers have unrealistic expectations when it comes to mortgage interest-rate trends, says national real estate broker Redfin. As the Federal Reserve considers an end to its stimulus program, interest rates are poised to increase and although most people (83 percent) believe a “normal” interest rate is below five percent, the actual average mortgage rate since 1990 is 6.7 percent. This disparity could pose a threat to housing recovery. Still, the number of potential buyers who believe ‘now is a good time to buy’ continues to increase.
SOURCE: DS News