Understanding How National Events May Impact Beach Haven West Interest Rates
Beach Haven West Real Estate Market
The Beach Haven West real estate market, like any real estate market, is closely tied to the movement interest rates. Generally speaking, the higher interest rate climbs the “less” a buyer can afford. This is due to the interest being charged on the principal loan balance. If there is an interest rate of 4% charged on a $200,000 loan in that interest rate changes to 5% on the same $200,000 loan, the monthly payment will be higher and some buyers may be unable to afford such a payment. While this is looking at only one aspect of a real estate market, and not taking into account the additional factors that can influence the affordability of a home, buyers and sellers must understand important events that may impact interest rates in the Beach Haven West real estate market.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.beachhavenwestrealestate.com | www.BuyLBI.com
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Important Events That May Impact Interest Rates in the Beach Haven West Real Estate Market
There are three topics that could potentially raise interest rates and impact buyer behavior in the Beach Haven West real estate market they are:
- Federal tapering
- National real estate market improvement
- Inflation
Federal tapering has been discussed for several years and essentially involves the purchase of federal debt. This process, which was expected to halt, has continued which has helped to keep interest rates low. The national real estate market has shown improvement over the past several months which points to an improvement in the overall national economy. As the economy improves, interest rates tend to rise so we must keep an eye on this combined activity. Lastly, inflation is directly tied to interest rates as inflation can reduce the value of perceived safer investments.
Understanding the Current Trends with Beach Haven West Real Estate Interest Rates
Home mortgages are an essential component of the Beach Haven West real estate market and it is important for both buyers and sellers to understand how interest rates can influence the real estate market. It is important as well for buyers to understand that there are many aspects which influence the interest rate charged on a loan including debt levels, income, and credit score. It is best to speak with a qualified lender to understand how your individual situation influence the interest rates charged, but at the same time it is wise to keep your eye on the national trends and important events that may impact interest rates in the Beach Haven West real estate market. For more information about buying a home in Beach Haven West, contact The Beach Haven West Real Estate Group and will be happy to answer any questions you have.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com