How Mortgage Rate Changes Will Impact You
Changes are coming, and this is how you'll be affected.
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.