Low or falling mortgage interest rates are better for housing costs than high or rising rates.
From a consumers point of view, higher interest rates are bad because borrowing money becomes more expensive. All things being equal, higher mortgage interest rates make for a higher cost of ownership and visa versa. When potential homebuyers actively look to purchase a home, shopping around for the lowest rate can save them thousands of dollars over the life of the loan. The Consumer Financial Protection Bureau launched a Rate Checker to help consumers verify if the rate they are quoted is good or not. Since rising mortgage interest rates raises borrowing costs, it's also detrimental to home prices, so nobody in real estate relishes the idea of higher mortgage interest rates. In a previous post I discussed the four variables that determine[READ MORE]