Stock Market Volatility Could Effect Homebuying Activity in Metro Atlanta
If the recent volatility in the US stock market continues, it could negatively influence home sales in the metro Atlanta housing market and slow price appreciation throughout the state of Georgia. Although metro Atlanta home price appreciation already slowed somewhat in 2017, increased stock market volatility could extend that trend as Atlanta homebuyers become less confident about investing in the local housing market.
In addition, because the housing market in Atlanta and the rest of the country is currently doing so well, many market analysts expect the Fed to raise interest rates at least once in 2018. The historicailly low home mortgage interest rates of the past few years have enabled Atlanta home prices to rise quickly as low home mortgage interest rates have helped keep mortgage payments low. If home mortgage rates continue to rise, however, prospective Atlanta homebuyers would be less able to afford homes at such high prices because their morthly home mortgage payments could increase significantly due to higher home mortgage rates. Higher home mortgage rates would also reduce the number of homeowners who are able to refinance their home mortgages in Atlanta.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.