What sort of impact did the election have on the market? I’ve got some good news and bad news to share with you today.
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With the election over, it’s time to talk about what’s happening and going to happen with mortgage rates.
There’s some good news, and there’s some bad news.
Let’s get the bad news out of the way. Mortgage rates have shot up since the election. From a low of 3.4% on November 7th, the average 30-year mortgage rate increased to over 4% by the end of November. Economists say this kind of volatility is likely to continue, with day to day changes driven by the moves and statements of the incoming administration.
The good news is that there are still plenty of reasons to stay optimistic. Promised tax breaks could reinvigorate sales of luxury homes, which have been in a rut lately. This could potentially have a ripple effect throughout the rest of the real estate market, spurring sales and new construction of mid-level, lower price housing.
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Looser regulation could also make it easier to further stimulate construction and make it easier for buyers to obtain mortgages.
The election is finally over.
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Although those are long-term effects that we can look forward to, there’s something to be thankful for right now. The election is finally over.
You might have seen that the stock market has been surging in the past few weeks. This might be a vote of confidence for the President-elect and his anticipated business-friendly policies. One thing is for sure; it seems like things are getting back to normal as people realize the world isn’t ending. In fact, people who might have been waiting on the sidelines during the election are now entering the real estate market.
If you are a seller, you should take advantage of the influx of buyers. Prices are near record highs.
If you are a buyer, there are two things you should know. First, even though interest rates have gone up, they are still historically low and worth taking advantage of. Second, many new homes have entered the market since the election, giving you more properties to choose from.
If you or anyone you know is thinking of buying or selling a home, please call me or send me an email. I would be happy to answer all of your questions!
