How Can Higher Mortgage Interest Rates Help You?

Nobody wants to see higher mortgage rates...or do they? While some may argue that it is coincidence, others would argue that the recent spike up in mortgage rates are helping to drive more home sales.  Pending home sales hit a 6-year high in May, up 6.7% from a month earlier and 12.1% higher than a year ago.  May's index reading of 112.3 marks the highest level since December 2006, when it hit 112.8.  Time will tell if this is simply a short term uptick due to on-the-fence prospective buyers jumping into the market before rates could continue to climb, or part of the larger trend we've seen the last two years of home sales climbing. Either way, it doesn't look like the dramatic jump in interest rates poses any threat to the housing recovery at this point.

Last Thursday, interest rates rose more than half a percentage point, the biggest increase in more than 26 years. Are you ready to make a move or will you wait on the sidelines, hoping interest rates fall again? Need help deciding, I know a great Realtor!

Carylee Stone

Distinctive Properties

858-344-2632

carylee@stonehometeam.com