Rate Lock Will Worsen Home Sales

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% to 4%. If they decide to sell, they will need a new loan product that will probably be around 5%. That difference of 1% or 2% is what causes the “Rate Lock” effect.