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The Russian-Ukraine Conflict and U.S. Real Estate: Rates Dip and Home Prices Rise
Since the beginning of the year, we have seen mortgage rates go up a whole percentage but as of March 1, the average 30-year, fixed rate mortgage, dropped three basis points to 3.89%. This is great news for the Spring market, however, with the uncertainty of the impact to America’s economy after Russia’s attack on Ukraine, home prices will most likely continue to rise.
What Does this Mean for Homebuyers?
With the current mortgage rate dipping, homebuyers will have the advantage of purchasing power. They can better afford homes in the market and will likely want to make a move soon. This also means the record high home prices aren’t going anywhere.
According to a new report released by CoreLogic, home prices in January 2022, were 19.1% higher than the previous year. This is a huge increase in cost for new home buyers. The bottom-line is, now may be the time to get your sellers to the settlement table before costs go up any further, or the uncertainty from the Russian-Ukraine tension continues.
Russian-Ukraine Conflict and its Impact on Real Estate
The current Russian-Ukraine conflict is incredibly hard to see unfold, and Velocity Title’s prayers are with all of the Ukrainian people fighting for their freedom. As the war continues on, the United States will no doubt feel the ripple effect. When it comes to real estate, it’s important to understand what may lie ahead.
Many real estate professionals are wondering how this conflict will impact the mortgage rates and housing market. According to Forbes.com, “…rates for home loans follow the path of the U.S. Treasury bonds, which are seen as a less volatile investment than the stock market. When bond prices rise, rates fall. Investors typically respond to global uncertainty by selling riskier assets and buying those considered safe havens. Immediately following the news of the Russian invasion of Ukraine, the benchmark note for a 10-year Treasury dropped nearly four basis points to 1.941% at 11:31 am EST.”
With the uncertainty in the months ahead, one thing is for certain right now: the rates have dropped and it’s going to give buyers confidence to act now. As a real estate professional, reach out to those clients that have been on the fence for buying based on what they could afford/finance. Now may be the time for them to buy before home prices continue to go up.
Velocity Title Moves Your Business Forward
Velocity Title will continue to monitor the Russia-Ukraine conflict, and report on its impact to the real estate market. At Velocity Title, we support the real estate industry with a comprehensive line of title services that add value to each and every transaction. At Velocity Title, Our Personal Support Makes You Look Good Every Time! With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying process to be EASY, EFFICIENT and INFORMATIVE. For the perfect settlement experience every time, click here or contact us today!