Mortgage Discussion for the Panhandle area

What a difference a week makes. Interest rates are moving and not in our favor. This may seem like some bad news but I truly do not think rates have anything to do with our current market. Rates were up and the housing market slowed. Rates came down and the slow market continued. Rates do not sell houses, people do.

First let's look to why rates are moving up. Gas prices, need I say more? I wrote an article last year explaining rates move in accordance with gas prices and why that is so. Gas prices are a major economic factor and with $4.00 gas prices across the nation the cost of goods go up and that leads to inflation. Inflation is cured by strengthening our U.S. Dollar against foreign currency and that is done by raising interest rates. That is a simple version.

What does all this mean? Nothing in my opinion. People are scared to buy real estate by the media keeping a dark cloud over our industry. Those of us who can divert our efforts to educating the consumer that real estate is a great buy right now will win the prize. The normal customer has misconceptions that they no longer qualify for a loan and will be turn down. Others think with all they have heard on TV and in the paper that they will need $20,000.00 in cash to buy a home. All of this simply is not true and it is up to us to get the message out.

FHA rates are still below 6.5% and a customer still can buy a house for little or no money out of pocket. We do not have the minimum credit score requirements some realtors are having issues getting approved. Life is good in a troubled market for those who know how to get the positive word out that qualifying is easy and home prices have never been better.