Interest rates have steadily increased to over 4% in recent months, but prices have not curbed (yet). Most people assume that mortgage rates and price have an inverse relationship (yield up=price down), after all this holds true in the bond market and commercial cap rates. This is not always the case when mortgage rates rise, as many other factors come into play, such as wages. Up until now wages in Bellingham have increased along side the mortgage rates. According to PayScale in Q2 2018 Bellingham has experienced a .02% drop in wages. This could be an indicator prices may level off especially if rates continue to rise.
What does this mean for you?
If you are a buyer who has been waiting on the sidelines, it may be time to start warming up! If you are planning on selling and want to know what your house is worth today, call us we will give you a free market analysis.