It was bound to happen. The low rates home buyers have been offered are going to give way for the lenders to increase the numbers and that ends up costing more money the homeowner will have to pay more per month and this equals less buying power. I see smart home buyers who consider what their nut will be. Add the numbers and half a point to 1 point can drastically make way for disappointments. It has to happen, can our lenders give out home loans in the 3's forever? I believe that the answer is no. The point I am making here is I get the feeling that the people do not believe it will happen. The boy who cried wolf.
In conclusion we Realtors need to educate our potential home and condo buyers that it is time to get down to it, find a property and lock in that great interest rate.
Find a good lender and talk about your expectations if you are a home buyer in the near future. It is hard enough to find a property and agree upon a price. Do not become surprised to hear the news that it may cost you more to borrow money.
Noah Seidenberg is a licensed Illinois real estate broker in Chicago area and can be reached at Chicagoland & North Shore Real Estate or by phone at (800) 858-7917 if you have any real estate related questions.