The Coming Mortgage Lock-in Future Effects of Today's Low Rates

Homebuyers of today have enjoyed the low, 3.5% mortgage rates. It has enabled them to buy decent-sized family homes with a rate that they can afford. Although this is good for today’s market, the low rate will have implications on several facets of our society, such as labor mobility, the remodeling industry, and the demand for new houses. If interest rates increase, it will become harder for families to move into larger homes, so the demand for new, more expensive homes will decrease, thus affecting builders. However, the demand for remodeling and new additions will be on the rise, causing an increase in that market. Also, most people choose to move to economically thriving areas. If there is a mortgage lock-in, those moves will decrease due to inability to afford prices. Read the full article here: