Market changes are happening. For the first time in over two years the market is peaking and we are seeing things return to a more traditional real estate cycle of peaks and slowdowns. The media won’t stop talking about it and it’s true, interest rates are rising. But let’s be honest most of us could have predicted that the historical lows we saw during the pandemic days would not stay around forever. That’s why the past few years we saw low inventory numbers on the MLS. Lots of buyers were trying to take advantage of the low rates but the low rates also caused some frustrating effects. The competition for homes was high and bidding wars, forgoing inspections, and offering over asking price were all common occurrences. A low interest rate does not always equate to an easy and affordable way to get into buying a home. The market regulating can be a good thing.
Interest rates are higher, right now they sit around 6-7% for a 30-year fixed mortgage. Although this might seem shocking, we must remember that you date the rate, and marry the house. A silly phrase for sure, but it’s true. Refinancing on your home is always an option. Interest rates will continue to ebb and flow and if the rate does go down in the future refinancing your home can help you save on future interest costs. You are not stuck with the interest rate that you obtain when you first commit to your mortgage.
I believe that the key to having success in this next market phase is to work with a trusted local lender to truly understand your budget and continue to have a relationship with them so that together you can ensure your mortgage is the best it can be for you. Buyers are finally having a little leverage in the home buying process again. If you have any additional questions on the market, please feel free to reach out!