Mortgage Rates bounce, can buyers and sellers time the market?

[AJ Wong]

Real Estate is historically stable or at least generally takes longer to see the effects of market conditions than other asset classes such as: stocks. 

Two weeks ago I wrote about how market sentiment has shifted due to a decrease in rates and there was a flood of buying activity. Those same buyers might be just as surprised as I was today to find that rates have increased again by nearly .5-.75%+ since that post. (A 30 year conventional mortgage is supposedly once again approaching 7%ish..)

Those are volatile moves for a mortgage market that can effect buyer(s) purchasing power and obligation significantly. 

The next few weeks will likely  foreshadow the intensity of the spring and summer markets, however it’s possible in our increasingly interconnected and responsive economy that buyer(s) will once again shelve their purchase plans until conditions and rates improve. 

That begs the question; can buyers or even sellers for that matter ‘time’ the market? Or are market ‘swings’ overblown and overvalued? 

My advice to clients that are looking to purchase is to be as prepared as possible with financing options based on property type or condition they are targeting. 

For the right property and ‘right’ deal the  terms could and should be workable. 

In fact difficult sales environments often create more advantageous and creative solutions to conventional terms. 

Have the recent rate increases already shifted your market? 

Our biggest challenge here on the coast is a lack of quality listings. 

Cheers.