Changing Mortgage Rates Impact On Realtors

So interest rates affect realtor commissions a little differently than most people think they do. Realtors don’t make money because of higher, lower interest rates or property values going up and down. They make a lot more money from volume, more transactions happening. So, for instance, if a house now has a $5000 commission and before they would have made a four thousand eight hundred dollars commission, they’d rather do two or three houses with the four thousand eight hundred dollars commission than one house at a five thousand dollar commission. Even though the property values raised in general. As interest rates go down, more transactions happen and as interest rates go up, less transactions happen. In this core market, we’re at a low volume at all points, so most realtors need to be creative.