Understanding the Correlation Between Mortgage Rates and Home Sale Numbers

Common sense will tell you that the sales of homes increase when mortgage interest rates decline and the sales of homes decreases when mortgage interest rates increase. The logic hinges on the belief that interest rates determine affordability. If rates increase, affordability decreases thus the sales of homes should decrease. The sales of homes in the current housing market shows there is no correlation between rates and home sale numbers. The problem with common sense is that it is sometimes wrong.

The number one factor that drives home sales is affordability not mortgage rates. Mortgage rates may influence whether or not a person buys a house but it is not the limiting factor like affordability is. People will buy a house if they are able to afford the price.

What is affordability? Affordability is made up of many factors. The interest rate on mortgages is one factor. Most lenders require a mortgage payment to be a debt to income ratio of 32 percent or less. Lower interest rates will allow a person to qualify but have their loan application rejected at a higher interest rate. If interest rates start to increase, the number of homes sold has a jump in sales because people rush to purchase before the rates increase to a point they can no longer afford to purchase the house.

Another factor is the amount of down payment that is required to purchase a house. If a person can purchase a house with only a 3 percent down payment they may be able to purchase a house. If you push the down payment to 20 percent, that person may no longer have sufficient funds to purchase the house. The amount spent on closing costs can also be a deal breaker in purchasing a house.

The price of homes is another determining factor for the sale of homes. Lower priced homes have a larger pool of qualified buyers so the sales of these homes are quite brisk. Yet sales of more expensive homes are not as brisk.

With the current downturn in the housing market, sales of homes have decline for the past year. This has occurred even though the interest rate on mortgages has been at an almost 50 year low. If there was a strong correlation between mortgage rates and home sale numbers, then the sales of homes would be increasing due to the historically low mortgage rates. This shows there is no correlation between mortgage rates and home sales.

How Work From Home Sales Can Earn a Real Income

Would you like to learn more about work from home sales opportunities, but are afraid that these types of jobs aren’t enough to really support you or to earn what you would call a real income? Are you thinking that you may need to work and work and work and yet get very little back in exchange for that work? While it’s true that many people try to sell things online through their own site or through a site like eBay with varying degrees of success, it’s also true that work from home sales opportunities can pay you well, if you know how to manage and handle them.

How do you make work from home sales opportunities actually pay off? What is the difference between one that works and one that is hardly worth the time?

The product your selling may have something to do with the success you have. The best work from home sales positions will be those that sell something people will need to buy continuously, such as vitamins or supplements. If you sell something like wedding supplies, of course you’ll get many customers and sales but most people buy their supplies just once and then they’re done! If you choose work from home sales opportunities that sell products people use up and need to purchase again, you’ll get repeat business.

The amount of work you put into your work from home sales job also has a great deal to do with your success. You typically can’t just put up a website and expect sales to start rolling in. It’s good to network and advertise your site, building links to other sites and adding fresh content as well. Working continuously on getting your product out there is important for other jobs but also for your work from home sales positions. Remember to keep doing this even when you’re not online. You can have home parties where you introduce your product and hand out business cards with the product’s name and your website as well. When you try work from home sales, don’t think that your customers will just come to you! Talk to people at your gym, in your apartment complex, at church, or anywhere else you think is appropriate about your product and also direct them to your website for sales.

It’s also important to not give up on your work from home sales opportunity just because you don’t have the sales you were expecting, especially in the first few months. It takes some time for your website to get visitors and for sales to start rolling in. But once that happens, you may find that if you keep working at it you have repeat business and customers and more sales than you expected! So be determined to make your work from home sales job the one that is successful. Keep working at it every day, whether online or not, and you’re sure to have certain success!