Here’s what buyers and sellers need to know about our changing market.
We are living in a fascinating real estate market. Sellers are receiving record prices for their homes, and buyers are taking advantage of historically-low mortgage interest rates. However, are times changing?
During the peak of the pandemic, interest rates were lowered, and buyers’ purchasing power increased as a result. Now, they’re starting to rise. Does this mean our fantastic market is over? Not quite. If you check out the video at 0:50, you can see that the average interest rate over the last 30 years was 7.81%. Sure, our current rates aren’t as low as the 2.96% average we saw during the pandemic, but they’re still well below the average.
“Sellers should make a move sooner rather than later.”
Most lenders are quoting rates somewhere in the low 5% range. If you are a buyer and you have an old pre-approval, you may need to have a conversation with your lender. Rates are still good, but they’ve increased, so you may have to reevaluate your budget. It always helps to know exactly what you can afford before hitting the market.
For sellers, now is still a fantastic time to sell your home, but it may not last for long. When rates go up, demand goes down, so there will be less competition for your house. If you want to take advantage of this competitive market, make a move sooner rather than later.
If you have questions about today’s topic or anything else, please call or email us. We are always willing to help!