You’ve probably heard by now that interest rates are at a seven-year high, but what does this actually mean for your real estate goals?
Interest rates have been held artificially low to stimulate the housing market for some time now, but this is no longer the case. Buyers have been complaining for six years now about how difficult it is to find a house. What they might not realize is that this lack of supply has largely been a result of the interest rates we were seeing during that time.
Now that rates have begun to steadily creep up, though, it’s no longer a matter of buyers being unable to find a home—instead, buyers are simply choosing not to look. Despite the fact that inventory has risen and overall conditions have leveled out, many buyers are letting a fear of the unknown prevent them from taking advantage of these favorable conditions.
Instead of focusing on list price alone, buyers must start considering where affordability is headed. Interest rates are still historically low, so locking in a rate today is a far better choice than waiting things out and hoping for the best in the future.
The last thing my team and I want is for a buyer to miss the opportunity to secure a home at a rate that works for their budget. If you wait too long to buy, you may have a much harder time affording a home at all.
We recently worked with a client who told our team that if they had put off their move any longer, they would’ve been unable to make it happen at all. These buyers went under contract a month ago, and if they would’ve waited until today to do so, their payment would’ve been an extra $181 per month.
So if you’re on the fence about purchasing a property, yourself, now is the time to get in touch with a lender and become educated on your options.
And, as always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.