Interest rates drop in Des Moines

To slightly alleviate the situation for multiple homeowners in the city of Des Moines, it is expected that the city will be able to count on another small percentage deduction in interest rates for the next month.

Although this reduction will not only benefit existing homeowners, it could positively impact the real estate market and people considering purchasing property in the city, experts say.

Among the doubts or fears generated among Des Moines market experts is that if housing demand grows significantly due to this rate deduction, new buyers may not feel they are saving on interest due to the abundance of people interested in buying houses. As everyone knows, when the market has a large volume of buyers, property prices usually rise, and inventories decrease.

As indicated by the Federal Reserve chairman, the fundamental idea of this interest reduction for mortgage loans is that everyone should feel they have the right to a decent and affordable home.

And although another interest rate reduction is expected in the coming months, Des Moines real estate agents have already noticed that with the current reductions, the market has seen an increase in home purchases, despite the fact that property prices have also risen.

However, many residents have spoken out upon receiving the news, as they believe that even with current prices plus possible interest reductions, buying a home in the city is still very difficult. They emphasize that they know the lower the interest rate reductions, the more people will seek to buy property, making affordability more complicated.

Despite the deduction in interest rates for the city of Des Moines being good news, it is also expected that demand will not increase too much to avoid speculation in housing prices, as seen in previous years where high demand led to bidding wars.

It is expected that the market will go into a frenzy, even though property prices may increase and the listings of houses held by home developers and various real estate agencies may be significantly reduced, as well as the time on the market.

Although the time on the market generates more mobility in the real estate market, the inventory of available and affordable properties in the city of Des Moines is very limited, as people living there do not want to move, and investments in new constructions are few compared to the city’s demand.

Therefore, even if rates are reduced, the Des Moines real estate market has little housing inventory, and those that remain for sale receive many offers and are generally purchased by investors who do not need to resort to a mortgage loan as an individual would.

Available Foreclosures:

Des Moines: 120 homes available

By Elías DaSilva | 18 de octubre de 2024.