While rates are still low, they are steadily creeping up and expected to continue to rise this year along with economic optimism – the MBA (Mortgage Bankers Association) expects them to be in the mid to high 3s by December of 2021. Now they are hovering around 3.25%.
I’m eager to see how this will impact our market, as it will very much impact buying power for most people. However, I believe here in Atlanta it may not do much to slow buyer demand, as much as higher rates would in other cities. I am seeing a lot of cash buyers in the marketplace (especially in the price points of $200-300k) sometimes buying sight unseen. Atlanta is one of the most affordable major cities with a very bright future. Because of this, people are eager to purchase homes, to invest or live here (as you’ve heard me talk about before).
Also, with threats of inflation and growing weariness of investing in the stock market, more people, as well as hedge funds and investors are chosing to put money into hard assets instead, like real estate and gold, as well as cryptocurrency. (I haven’t seen a house sell in Bitcoin yet, but I don’t think it’ll be long before I do!)
For all your mortgage questions, reach out to Jeff at Waterstone!
I’ll also be doing an Instagram Live tonight (4/7/2021) at 6pm. Hop on and ask me any questions you have! www.instagram.com/realestateian