The interest rate conversation is back. While we can’t predict the future (hello shutdown 2020!), all signs lead to interest rates ticking up and staying up.
How high? As of writing this article today, interest rates are hovering around 3.45% for a 30-year fixed-rate mortgage, the highest it’s been since May 2020.http://www.freddiemac.com/pmms/
What’s your price range? Interest rates largely drive purchasing power. You may find yourself looking in lower price ranges as interest rates increase because your rate will affect your total monthly obligation. However, with rents soaring and inflation sticking around, money at 3.45% is still very cheap still making it a good time to consider a new home.
Are you looking for a move-up home? – Recast loans are popular options for households looking to move up. This allows you to buy first and then sell after you find THE home, keeping moving as stress-free as possible.
Conclusion:
You will do well in the real estate market this year if you are prepared and armed with a great REALTOR! The market is going to naturally weed out buyer competition that is scraping by to qualify. However, the market is also still rewarding Sellers with multiple offers if marketed properly. Regardless, homeowners enjoy a net worth 40x greater than renters and that is always a goal worth pursuing!