What's Going On With Interest Rates?

Hey! Happy Saturday! Just a quick message on the biggest question I'm getting this weekend which is about interest rates. So a couple of things you need to know. Prices of homes and interest rates don't move together, but let's just say they did if the market moved 10% down in price that's equal to about 1% of the mortgage rate so if the mortgage rate moves up 1%, 10% less house so if you're looking $550, $600 now you're looking $500, $550, so they don't move in conjunction but if they did uh it would be 10% move in prices our downturn in '08 was '20, it took two years of inventory, meaning if no other homes came on the market it would take two years to get rid of the inventory that's what it looked like in '08 and '09. This time around we would need to we have days of inventory, so we would need to increase our inventory dozens of times, meaning thousands of percent in order to get there to get to a 20% dip, so your eye is on the mortgage rate not the price at the moment. Now all that being said, it's still super low inventory, so people are buying homes. They're still affordable, the market is still healthy, so don't panic, just focuse on if you need a house. Please right now, if you're hearing this, and you're in the market with me I would tell you, unless you have a five-year timetable no matter what the interest rates are or the housing situation, you should really be thinking about renting versus buying, unless you have five years. That's the rule okay. Any other questions, let me know. Check out the newsletter.

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Just a quick announcement KSPG Financial, a company that I own the mortgage company is now open. I've done it to make sure that my clients are getting the best rates and that we can act fast, in a fast moving market, so give me a call if you have questions at 484-502-6555.

You can get a great rate as always, you can reach me directly as well at 484-880-2388

it's the spring market. This is the time to sell, if you're thinking of selling.

NMLS Individual # 2294145 NMLS Company # 2326902

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