When the U.S. Federal Reserve signaled it will raise interest rates two more times than previously expected, many noted it’s finally time the economy started slowing down. Interest rate hikes mean consumers will see higher bills on credit cards, auto loans, and mortgage loans, especially those with adjustable rate mortgages (ARMs). This puts many existing homeowners and would-be buyers at a disadvantage. As a real estate professional it’s important you stay up to date with current market conditions. Not only for your own business, but so you can help your clients make the best decision for themselves. Continue reading to learn what additional interest rate hikes would mean for home buyers pursuing ARMS and homeowners with ARMs.
What Higher Interest Rates Mean for Some of Your Real Estate Leads
On June 13th, the Federal Reserve hiked its benchmark short-term interest rate a quarter percentage of a point. With unemployment and inflation rates at an all-time low, the Federal Reserve no longer sees the need to keep interest rates at recession levels rates. In addition, many are wary of the economy overheating with trade tensions and growing consumer confidence. Higher interest rates are discouraging to would-be homebuyers pursuing an adjustable-rate mortgage. Higher interest rates may also discourage would-be up-sellers looking to move into another home.
How to Help Would-Be Homebuyers
Many of your contacts may feel discouraged by the news of interest rate hikes. However, you can still motivate them to sell in 2018, by sharing how to strategically buy in 2018. Share this complimentary buyer lead capture tool, “Buying a Home in 2018 – can I still afford to purchase a home this year?” to educate would-be buyers on 2018 market conditions. This infographic includes statistics on the 2018 real estate market, including mortgage qualifications, tax deductions, property tax deductions, and mortgage tax deductions. To download this buyer lead capture tool, click the link below –
How to Help Homeowners with Adjustable-Rate Mortgages
To current homeowners with an ARM, the interest rate hikes may signal either time to purchase a new home or time to refinance and pursue a fixed-rate mortgage. These homeowners with ARMs may need the advice of a real estate professional. It’s important for you as an agent to keep your client or potential clients’ best interests in mind, even if that means you must forego a sale. Educate homeowners on the benefits of refinancing during times of higher interest rates, share this lead capture tool, “Refi or Buy – 6 Questions to Ask Yourself.” You’ll help consumers decide whether buying and selling or refinancing is the best option for them. To download your lead capture tool, click the link below –