Today, we’re here with Steve Stork from Summit Funding to discuss interest rates in Ann Arbor. As a mortgage broker, Steve always keeps us informed on trends.
Over the last year, we’ve had a consistent demand from 2014 going into 2015. Many markets haven’t had a sufficient inventory to support the demand. The high demand has resulted in increased average sale prices.
Mostly, there haven’t been issues with home values over the past year. A consistent home purchase momentum has helped sustain increased prices. Likewise, the potential increase in rates concerns us. As interest rates rise, it may deter buyers from buying. Perhaps, buyers may no longer qualify for loans as properties rise and instead, wait off until prices drop.
This trend could potentially lead to a temporary decline in value. Less buyer demand leads to an increase of home inventory. Sellers will have to lower their prices in order to sell. To maximize your profit, sellers should consider selling now before interest rates rise. In Michigan, there’s still a strong demand for homes.
For any questions about interest rates or lending options, give Steve a call at 248-755-3701. You can also call our real estate office about buying a home at 866-OWN-THIS. We’d love to hear from you.