All Good Things End – Even Low Mortgage Interest Rates.
Mortgage rates have climbed to a two-year high. What is different about this rise is a growing concern that borrowing costs are more likely to continue to rise. This could make the challenges of today’s seller’s market even worse for some prospective purchasers—particularly first-time buyers.
They hit an average 4.43% for 30-year, fixed-rate loans as of March 1, according to Freddie Mac data, but still well below the 6%+ rates that were charged before the housing crisis. The new Fed Chairman, Jerome H. Powell, said they are expected to go up even more after the Federal Reserve bumps the rates up in 0.25% increments, at least three times this coming year, beginning this month. The rate hike is not going to stop most buyers’ decision to purchase a home. Instead, it will create a sense of urgency.
The good news is interest rates alone do not determine the decision to purchase. People still want homes they hope would appreciate with time, and that they can take pride in. Some shoppers would need to settle for properties in the lower end of their budgets. That is in large part because affordable houses are in short supply. A rising-rate environment makes waiting on home buying more expensive. Starter home values are rising at a faster clip than luxury homes, according to Zillow.
The trend has been in place for at least five years, but signals that the shortage of affordable housing could get worse.
First-time buyers — many in the millennial age range of roughly 18 – 35 — could continue to face a shortage of affordable houses. Demand does not appear to be slowing down, especially with mortgage rates now on the rise.
When buying or selling a home in today’s market, you need a market-savvy Realtor who has experience not only in today’s market but in who also has a team of professional Real Estate Consultants to guide you through the process of everything that needs to be done. By hiring Susan Compagner and her team of Professional Real Estate Consultants to help you, you will receive expert advice from people who are knowledgeable, experienced, and who will truly listen to your Real Estate needs. Our clients say, “Susan and her team are compassionate and caring about what they do. They have helped us when no one else could.” As your trusted Real Estate Consultants, our team meets with you and offers you the guidance and the information you need to make every facet of your transition as smooth and comfortable as possible. As full-time Consultants, we are able to ‘work the market for you, keeping you up-to-date with conditions as they impact the market. Let us help you ‘Make A House Your Home.” Call/text Susan Compagner at 616.836.2603, [email protected] www.SusanCompagner.com.
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