RETECHNOLOGY PREMIUM MARKETPLACE RELATED PRODUCTS | WEBINARS | SPECIAL OFFERS
You are viewing our site as an Agent, Switch Your View:
Agent | Broker Reset Filters to Default Back to List
Due to the ongoing situation with Covid-19, we are offering 3 months free on the agent monthly membership with coupon code: COVID-19A
UNLIMITED ACCESS
With an RE Technology membership you'll be able to view as many articles as you like, from any device that has a valid web browser.
Purchase AccountNOT INTERESTED?
RE Technology lets you freely read 5 pieces of content a Month. If you don't want to purchase an account then you'll be able to read new content again once next month rolls around. In the meantime feel free to continue looking around at what type of content we do publish, you'll be able sign up at any time if you later decide you want to be a member.
Browse the siteARE YOU ALREADY A MEMBER?
Sign into your accountRate Lock Will Worsen Home Sales
May 01 2018
"Rate lock" is not a common term in real estate, but it is pretty easy to understand. And once you understand it, you will appreciate why trade volume in real estate is going to continue to stay low for a long time, and possibly why the stock market is in for a continued rise.
Today's homeowners are probably in a loan product that is somewhere around 3.31 percent to 4 percent. If they decide to sell, they will need a new loan product that will probably be around 5 percent. That difference of 1 percent or 2 percent is what causes the "rate lock" effect.
When consumers trade houses, the unpaid balance of their loan will see a significant increase in the interest paid on that loan. That is a pretty significant hit that adds cost to the transaction.