The Honest Broker: Is it time to get off the fence?

The Honest Broker: Is it time to get off the fence?

BY: Diane Lott, Broker

According to Matthew Graham of “Mortgage News Daily”, “mortgage rates have been trying to find a ceiling in the past 3 weeks after rising at the quickest pace in years. The situation deteriorated at the start of the current week with the average lender back in line with long-term highs on Tuesday.”  In his professional opinion “April brings hope that the rising rate trend of 2021 might need to cool off for a bit, but it doesn’t seem likely”. 

What does this mean for buyers and sellers that are out there right now?  

Buyers should know that interest rates for mortgages are on the rise and all those low mortgage rates of 2-3% are a thing of the past.  If they are contemplating on purchasing a home, the longer that they hesitate, the higher the rates will climb.  That means that at higher loan rates, this can potentially affect their ability to qualify for a mortgage, affect the price of the home that they can afford and/or meet the monthly payment. The window of affordability of a home can be closing on some.  This may spur some “fence sitters” to jump off the fence and into the market.

Sellers should also know that higher mortgage rates may affect the salability of their home. The pool of able buyers might shrink a bit and the house may take longer to sell.  However, in today’s market, that of a “seller’s market”, the lower inventory of homes, and the influx of new residents to our area, the effect on home sellers may not be too damaging.  Ultimately though, after selling their home, the mortgage rate increases will affect them as well, as they will most likely be on the hunt for a new home and possibly, a mortgage.  

Unfortunately, “cheap money” is going away and all those fence sitters should take this into account as they make the decision for a home purchase and sale. If you have not already reached the point to reach out to a mortgage broker, it may be beneficial to consult with one to see how the current mortgage rate increases will be affecting you.

Stay well…

Diane

Diane Lott, Broker

Owner: Paradise Found Realty

*The highest compliment you can give is when you feel you can refer a friend…
  Hope to see them soon!

Paradise Found Realty, Inc. of Palm City

website:  www.ParadiseFoundRealtyFl.com

Email:  diane@paradisefoundrealtyfl.com

Phone:  954-294-5060

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