Thehustle
1 year ago
Hey I got a text message from Mr Laine . I asked about interest rates and buyers and hereโs his response.
โIโm not surprised at this. Buyers are going through a grieving process. They realized that they โmissed the windowโ. They can remember in recent past that rates were below 4%. Now they are above seven. What they donโt realize is that the 50 year average of interest rates for mortgages, is 7.2%. So we are at average. It will take them time to get through the five stages of grief and land on acceptance. Meanwhile, all of the life events that are triggering sales, like death, birth, divorce, marriage, etc. are still happening and so a stockpile of buyers in need of more space or in need of downsizing is accumulating. Whatโs going to happen is rates are going to go down, because never in our nations history if we had in a recession, where rates didnโt go down, And the buyers are going to flood back into the market and weโre going to see bidding wars all over again. - Ed Laine