The housing market appears to be at a turning point for the first time since the start of the coronavirus pandemic in 2020.
Mortgage rates are higher. Home prices are still increasing, but much more slowly than they have been the past two years. This could have you wondering: Is it still a good time to sell my home? Or, if you’re looking to move, is this a better time to buy?
“Mortgage rates are nearly double than they were at the height of the pandemic,” says Fara Espandi, Sales Associate at ERA Justin Realty, “But the important thing to remember is those record low mortgage rates were outliers, and not the norm.”
Mortgage rates have climbed in response to rising inflation. “If inflation continues to rise, chances are mortgage rates will continue to climb too,” says Jennifer Darby Metzger, Broker/Owner at ERA Justin Realty, “People interested in buying may want to act fast before rates go up again. If they drop again in the future, you can always refinance your loan.”
“Until inflation peaks, mortgage rates won’t either,” says Greg McBride, Chief Financial Analyst at Bankrate, “Without improvement on the inflation front we won’t know where the interest rate ceiling will be.”
Whether you’re buying your first home or selling your current house to make a move, the mortgage rate is an important factor. When rates rise, they affect how much you can spend on a home. That’s why it is crucial to work with a professional real estate agent who can make sure you make informed decisions as the housing market fluctuates.
Mortgage rates also impact how many houses are on the market.
“This spring and summer there are more houses on the market than last spring and summer,” says Espandi, “That’s because higher mortgage rates have helped ease buyer demand. If you were hoping to avoid the bidding wars of last year, consider buying now.”
As the market cools off, inventory rises. And it’s expected to continue. “This is good news for buyers,” says Darby Metzger, “If you were craving more options in your search for a dream home, it should not be as hard to find as it has been the past two years.”
Whether you are buying or selling, an experienced real estate professional can guide you on your way to new homeownership. Call Fara Espandi or any of the agents at ERA Justin Realty at 201-939-7500.