Today we’ll put the recent changes in our market into context for you.

Have you heard about the changes happening in the current market? Inflation has spooked a lot of people who were thinking about buying and selling. Mortgage rates were under 5%, but in the span of just a weekend, they jumped to over 6%. What do these factors mean for today’s homebuyers and sellers?

For one, these changes mean that some buyers can’t qualify for quite as much when it comes to home loans, if at all. Rates will likely settle around 5.75% eventually; a chart at 0:50 in the video above shows that the historical average over the last 30 years has been 5.97%.

“Reduced competition means that homebuyers now have a better chance to win a home.”

Despite these recent rate hikes, any rate below 6% is still a great deal for buyers. If you purchase a home now, you can lock in a relatively low rate before they go any higher. If they happen to decrease after you buy, you can always refinance to a lower rate.

Also, keep in mind that your competition is reduced because some buyers have been scared or priced out of the market.​​​​​​ If you were put off by the ferocious multiple-offer situations last year or the year before, you now have a better opportunity to win a deal. For sellers, if you bought your home a few years ago, you’ve probably seen 20% to 35% appreciation, meaning that now is a great time to get a high price for your home if you list.

If you have any questions about what’s going on in today’s housing market or how it affects your real estate plans, give us a call or send us an email. We’re happy to help.