Ray White Real Estate

 If we had working crystal balls, wouldn't it be easier to predict trends and what the future would bring? However, since most of them haven't found their personal version of their reliable form, it might make sense to better understand some of the signs and symptoms that might be helpful in giving us more information to make an informed decision! One of those pertinent questions is the relationship to mortgage rates and determining if/if and how long those interest rates will remain as low (or close) as they are today. With this in mind, this article will attempt to briefly consider, explore, review and discuss some of the relevant factors to focus on in these considerations and assessments.

1. So-called experts: The funny thing about experts is that they don't all agree. When it comes to interest rates, it can even be more - yes! The vast majority of economists today who specialize in the field believe that we are likely to see little significant change in these rates, at least until the 2020 election. Their reasoning appears to be based on several factors, including political considerations (President seeking re-election), fear of risking economic shocks, etc. But they also warn us that this may not be the case if inflation suddenly escalates, as it might, and other, real and/or perceived risks, etc.

2. External influences: What could be the consequences of a potential escalation of trade wars due to tariffs and/or President Donald Trump's rhetoric? If the war of wills with China continues for a significant period of time, it will make everything like building supplies, electronics, machinery, etc. more expensive. If Japan and the current administration fail to come to some kind of mutually acceptable agreement, it will put additional pressure on the system. What about the effects of our conflicts with our allies, including NATO, the European Union (EU), the United Kingdom (due to BREXIT), etc.?

3. Economic Considerations: If trade wars widen, or even if many perceive instability, etc., these economic considerations could affect the number of potential, qualified home buyers who are ready, willing and able to seriously consider buying a home. This would transform real estate market, from a seller's to a buyers' market, and this could have an impact/effect on mortgage rates, partly due to supply and demand!

4. Supply and Demand: Like almost every other aspect of the economy, supply and demand also has a big impact on real estate.

Be wise and pay close attention to the effects of various factors on the future level of interest rates and therefore what mortgages might cost. A wise consumer who educates himself is best prepared and prepared for any eventuality!

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