This is a great article from the Minneapolis Area Association of Realtors I wanted to share about interest rates. I get a ton of questions on what the rates are going to do this year so I thought this would be interesting for many of you. Below you will find the conclusion of the article and if you are would like to read the entire article – you can click on the link included.
Current and Projected Mortgage Rates – Twin Cities: In the face of declining affordability brought on by rising prices and higher rates, the key will be whether wage growth can neutralize that effect. Furthermore, in today’s low inventory environment, the other trend to watch will be whether prices continue to rise at a sufficient level to motivate hesitant sellers to list without rising so fast so as to alienate buyers.
Ultimately, the future is unwritten. But given the data coming out of the economy, labor and housing markets and the fact that the dream of homeownership is alive and well, we feel pretty confident that the U.S. economy in general and housing in particular will remain a bright spot.