During certain time periods, however, outside influences take over and occupy center stage. In times of low interest rates , for example, many more consumers suddenly enter the marketplace as potential home buyers. Out there, right now, are buyers whose principal motivation for purchasing real estate in today's market is the interest rate , not a particular property. It doesn't take a rocket scientist to figure out why.
Lower rates equate to lower monthly mortgage payments.
Lower rates allow more people to qualify for loans. Lower rates provide a window of opportunity for home-buying which, for many, will slam shut again, once rates escalate. It comes as no surprise, then, that this particular group of buyers has come out of the woodwork and is earnestly shopping for properties. Besides low interest rates, the real estate market has been driven by other influences in the past. More than once, consumers have proven that, given the choice between their emotions and their pocketbook, they will opt for the savings.