Published July 1, 2022
What’s Really Happening in Our Market
Here’s what buyers and sellers need to know about rising mortgage rates.
What exactly is happening with interest rates? Our market is shifting, and rising interest rates are the main culprit. We’ll briefly discuss what’s happening with interest rates, what it's doing to our market, and what it all means for you.
In case you don’t know, interest rates have more than doubled since the beginning of the year. At the beginning of 2022, if you bought a $400,000 home with a 30-year fixed-rate mortgage, your monthly payment would have been $1,700. If you bought that same home with the same loan with our new interest rates, your monthly payment would be just shy of $3,000 after factoring in appreciation.
Don't be afraid of rising interest rates
Affordability will have a huge impact on buyers this year, and we’ll keep you updated on how it affects our market. If you’re wondering if you should wait to buy or sell, we suggest you act fast. Despite challenges facing buyers, low supply means housing prices are not expected to fall any time soon.
Instead of a crash, our market will probably slow down. Inventory may build up slowly, which wouldn’t be a bad thing. Incredibly low supply has made things difficult for buyers. As more homes stay on the market longer, buyers will have more opportunities to get a great deal.
If you’re looking to buy a home, don’t be afraid of rising interest rates. We’re big fans of an old adage in the real estate business: Date the rate; marry the house. You can always refinance if rates fall in the future. However, your dream home won’t stay on the market forever.
If you have questions about today’s topic or any other questions, please call or email us. We look forward to hearing from you!
