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  • How Mortgage Rate Changes Will Impact You

    Monday, December 3, 2018   /   by Lindsey Gudger

    How Mortgage Rate Changes Will Impact You

    Changes are coming, and this is how you'll be affected.

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    Mortgage rates have been a big topic for discussion lately; where we stand now, money essentially costs more to borrow than it did a year ago. This has impacts for both buyers and sellers,
    and today we’ll be talking about how you may be affected:

    1. Interest rates are on their way up.
    This causes buyers to have less buying power—though their mortgage payment is higher, they’re receiving a lower amount of money. This impacts sellers because their buyer pool becomes smaller. When a price point becomes higher, there are fewer people who can afford it.

    2. Home values are going down. We’re only at around 1.5% more than we were in spring 2017. We were up about 10% in March and April, but this rise has basically disappeared since then. This all means it’s a good time to buy.

    3. Our inventory will go away soon. There are still plenty of options for buyers currently, but inventory will begin decreasing. We’ve seen a massive spike in pending home sales with the amount almost doubling over the past few weeks.

    Together, these changes make a situation where buyers have less to choose from, prices continue accelerating, and mortgages become more expensive. To be clear, now is the time to buy.

    If you’re looking to buy a home while prices are stable, have any questions, or would like some more information, feel free to reach out to us. We look forward to hearing from you.

      real estate, seattle