The retail price of gasoline is rising nationwide, now up 30 percent since the New Year.
It’s a similar run-up to what we’ve seen for retail gas prices in each of the last 5 Spring Seasons.
For people trying to time the mortgage markets bottom, clues about the future of mortgage rates may be at the local gas station.
Rising gas prices are indicative of the rising cost of energy and, indeed, crude oil is closing in on its 2009 high point. As these energy costs grow, so do inflationary pressures on the U.S. economy.
Inflation, of course, is awful for mortgage rates. When it’s present, mortgage markets deteriorate and rates tend to rise — often sharply and with little advance warning.
So, for today’s home buyers-in-process and would-be refinancers, prices at the pump may fore shadow bad news for the future of housing affordability. Even a modest, quarter-percent increase would have a palpable effect on payments, adding $372 in annual costs to a $200,000 home loan.
Since last week, gas prices are already up by 10 cents per gallon.
Here in the North Georgia Mountains, this unfortunately has a huge impact on the number of Home Buyer’s we have coming to the area. Since we are primarily a destination point and a Second Home Real Estate Market, when Gas Prices Rise I suppose folks are not as quick to jump in the car for a nice get-a-way to the Mountains. All we have to do is get you here, these North Georgia Mountains do all the selling for us!
If these Gas Prices don’t rise too much and you find yourself on I-75 heading North, please drop in and see me here at Blairsville Realty when you get into town. If you are just needing some information on the area, or you want to know a great place to eat, or just want to chat, I would be glad to assist you with any need you may have. We usually are solving the world’s problems in the foyer of the office anyway, so you might as well drop in and give us your two cents!
Make it a GREAT day!