Dropping interest rates actually encourage people to sit on the fence waiting for the bottom. Rising interest rates create a sense of urgency and a fear of loss, so i don't necessarily see this as a good thing.

For years, they have been hearing "buy now while rates are low" and it has not spurred action from fence sitters.  The stock market is not performing well, millions of people are underemployed while millions have dropped out of the job market altogether - these factors are far more important than a drop in interest rates.  Rising rates, on the other hand, may motivate some. 

Caroline,
Unless rates swing a half a percent or more it isn’t a big deal. Very few buyers are that rate sensitive. When they are ready to buy, they jump in.

interest rates were never a problem....we don't have inventory....

Seems that the stock market, oil, and a lot of other items are going down and are really on the back burner now. Amd PMI went up that ore than offsets the interest rate.

The small changes that we have seen over the last decade dont seem to phase people much.

The rates are still 4% or below, which is fabulous for buyers!

 Good Wednesday morning Caroline Gerardo . I think that the rates dropping may cause people to sit on the fence and see if they drop even more.

Caroline Gerardo well, this is indeed a good news - the buyers still believe that rates will touch 5% by the end of 2016. 

Caroline,

I think like you said, that consumers need to be better educated on what that means. A

We are still waiting for the Bank of Canada to drop its prime interest rate.

Did not move the market at all. 

This can only be good.  I had a few lenders calling me with the good news.  :)

It Will not change much at all

I did not notice any difference, but those who still plan to refinance might want to move faster.

I'm not sure if it will spur more activity or not as many folks are currently spooked about the financial markets.

In my business, lower rates are always a good thing. Business always increases as rates go lower. Applications are up 21% according to Mortgage News Daily. Even morning I check the 10 Year Treasury rate and the MBS. It is a very good indicator of mortgage rates. I hear the inventories are low, but any house will sell at the right price. The stock market drop is only temporary, as are interest rates, as I see both going higher later in the year.

 I think it all has to do with how long OPEC can drive oil prices down ....

I find unfortuantely that my buyers don't put too much thought into rates doesn't motivate them one way or another

I am finding that my buyers do not have their thumb on the interest rate pulse. They are motivated by their own personal agendas. I don't expect any change in activity because it has been good since the first of December.

I doubt it. The price has gone up more for everyone who puts off, the likelihood of getting a home is harder.  

Mortgage interest rates are so low that any prospective mortgage borrower should be taking action now.

Yes

A little scare of higher rates does get the fence sitters into action.