As I was in the car this morning the national financial news was pretty bleak. The stock market was down and interest rates were up. In fact they mentioned a home builders association that is cutting back on it's forecast for home sales because the higher interest rates will have an impact on them.
Then, I arrived here at the office and our in-house lender is saying that the rates are up to 4 3/4% and expected to go to 5%!! Just a month ago rates were still wandering around in the mid to high 3% range. Then he further went on to state that rates can spike like this, and then they will sometimes start coming down but if they do, it's slow and gradual. How scary is that!
I have buyers with offers out on properties. This will make us re-evaluate what they can afford and how much they are willing to offer. This could really have an impact on the current real estate market. Time will tell.
