Industry News

Fence-sitters jump into real estate market

Higher interest rates motivate more home buyers
Published on May 7, 2004

Only a few weeks ago, Kelly Egan and her fiancé Mike Rogers were looking at for-sale houses about once a week in Dubuque, Iowa. That was as much time as they believed they could spend house hunting given their commitments at school, work and church. Now, the two are looking at as many houses as they can no matter when they have to squeeze in the appointments. They've even put off planning their wedding for now to focus instead on buying a home. The reason for their all-out push comes down to simple economics, specifically rising interest rates. When the couple visited their bank two weeks ago, the interest rate for the loan they want to obtain was 6 percent. A few days ago, it was up to 6.25 percent, Egan said. "Our banker is super helpful and doesn't persuade us, but the interest rate sure did," she said. Home-buying activity historically has picked up its pace just before interest rates increased as potential home buyers scrambled to get into the market. That trend already is ...

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