Orange County Home Values Should Improve with Higher Mortgage Rates

Orange County housing markets and values should improve with higher mortgage rates.  

 

REALTORs® and real estate professionals have been encouraging their clients that now is a great time to buy, especially because of record low mortgage rates.   

That's probably true.  But will those low mortgage rates help the local housing values and markets?

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Local real estate news guru at the Orange County Register Jon Lansner reported that "Housing does better when rates are climbing" and said that cheap loans don't give homes values the boost you would expect.  

So why aren't the low mortgage rates helping the local housing market? 

Cheaper home loans in Orange County don't show evidence of rising housing values over the past 22 years, low loan rates won't get our housing markets back into good gear.   

• Orange County home prices didn't go up during times when mortgage rates were low. 
• When mortgage rates were up, home values went up. 
• Interest and mortgage rates tend to rise when economy is good and when there is demand for money. 
• When interest rates are up, employers give raises and hire more workers. 
• People with jobs and more money will buy more homes even when mortgage rates are higher. 

 

When mortgage rates go up, that's probably from an improving economy.  When Orange County house shoppers get buying, home markets and values should also improve.

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Lansner says that "nothing can get a house shopper to act fast as the fear of rising mortgage rates quashing the affordability of a deal on a dream home."    

Source: Jon Lansner, Orange County Register, September 19, 2010.

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Harrison K. Long @ Live At Orange County
"Helping People, Moving Forward, Developing Relationships and Protecting Property Values"  -Business Solutions and Advisory, REALTOR® and broker associate, Coldwell Banker Residential Brokerage - 949-854-7747  -  CA DRE 01410855 -  www.CoastLivinghomes.com   -  www.OCHomeValueGuide.com - www.ExploreOCHomes.com  -  www.LiveAtOrangeCounty.com -  

Higher mortgage rates should eventually result in improving Orange County housing markets and values.

Posted via email from Explore OC Homes