09/16/2026
Some economics that has started to hit our local markets. Mortgage rates climbing to 7% and headed that way as per the Wall Street Journal. Yep!!! If you are seeing all the price improvement ads on listings that is a sure reflection of a market that is trending to a buyer's market.
Please don't mistake this to be based on what the area offers such as location, convenience or anything else.
Prices are determined by demand and demand wanes as the economy weakens and people simply can't afford things.
Considerations when buying a home are based mainly on price, taxes, convenience to work and costs to maintain a home depending the size.
All other items that surround a home; adding or subtracting value are either perks or nuisances.
ONLY DEMAND raises or decreases a value and that demand is mainly created by the items mentioned above.
Chief Economist Thomas Thompson:
"Seven percent matters for another reason too. There is nothing economically magical about the difference between 6.99% and 7.00%, but consumers tend to notice round-number thresholds. For a housing market already struggling with affordability, seeing a mortgage rate that starts with a seven could be enough to make some buyers reconsider a purchase they were already stretching to make."
The housing market is approaching the highest mortgage rate since January 2025, likely spooking home buyers and home builders even more.
