As real estate professionals, it is important to understand how different factors can affect the price of property. One number which realtors often overlook, but which can have a strong impact on interest rates and purchase prices, is the value of the 10-year bond. In this video, Tom Iovenitti takes a recent monthly adjustment in the bond market as the starting point for an explanation of the interaction between bond rates and real estate prices.
Financial indicators like this one are particularly relevant for buyers, since a small adjustment in interest rates is effectively a large increase in home prices (and so your buyers can’t afford as much home). This is one of the reasons it’s important to track the financial markets; if trends suggest that rates may rise in the near future, for example, then it makes sense for buyers to lock in rates.
While no one knows for sure where the market will be going, as a real estate professional it’s important to understand the factors which impact the market, so watch this video, and stay tuned for more Realty News USA videos from Tom, as he presents not only the latest numbers, but an explanation of what they mean.