Mortgage rates…
They’re up, then they’re down. One day you hear that they’ve probably hit their peak, the next day you hear predictions of yet ANOTHER increase.
So, what does this mean for you and your search for a new home?
Well, the news isn’t great…
With interest rates currently hovering near 6%, home buyers are finding themselves with fewer options to choose from. They simply can’t afford as much house as they could a year ago, or even a few months ago.
But that doesn’t mean that you should give up and put off your home purchase until interest rates go down – it just means that you have to be a savvier shopper. And there are definitely some silver linings for buyers who are sick of hyper-competitive bidding wars.
Since we can’t control the interest rates, let’s focus on the bright side!
- Housing prices across the country increased nearly 20% over the last 12 months, and that means that buyers were already paying a hefty price for a new home. As interest rates rise, sales usually slow – and when sales slow, housing prices drop.
- If you were in the market for a new home just a few months ago, you might have been advised to submit an offer well over the asking price to increase your chances of getting your dream home. Not anymore! With less competition for a new home, you can offer asking price without worrying you’ll be instantly outbid.
- You can still get a decent loan, and if you’re pre-approved it may be possible to lock in your interest rate BEFORE you even find your dream house! Some lenders are offering extended lock programs that allow you to secure your interest rate for 60 days, all the way up to 12 months in some cases. Locking in your rate now means you won’t have to worry about future increases.
- Interest rates aren’t permanent. They WILL go down again, and when they do, you can usually refinance for a better rate. Sure, it will cost some money, but when you consider how much you’ll save over the life of your mortgage, it’s often worth it!
If you’re ready for a new home, you’ll need an experienced agent by your side as you navigate the ever-changing housing market. I’d love to help you find the perfect property! Just shoot me an email and tell me what you’re looking for!
