Real Estate and Mortgage professionals, as well as home buyers and sellers, are watching mortgage rates and home prices trying to determine what may be in store for the real estate market. Sellers are trying to determine if it’s the right time to sell and buyers are deciding whether or not they can or should buy a home now.
Mortgage rates have begun to climb, but according to an article published by Yahoo!Money, they remained steady in recent weeks. However, rates are still 2.5 percentage points higher than the beginning of 2022. These increases have not only caused some would-be home buyers to take pause, but even buyers looking to refinance are dwindling.
Unfortunately, the article indicates, “According to Erin Sykes, chief economist for Nest Seekers International, home buyers won’t see a reprieve in housing costs anytime soon as the Fed is expected to continue hiking interest rates to combat inflation.” Although home prices won’t begin to settle down for several months, now may be the best time for home buyers to finalize their purchase in order to lock in a low rate.
Buyers that decide to hold off may still feel the pinch with the cost of renting increasing; rental price medians at $2000 a month. These large monthly payments make it difficult for hopeful homeowners to begin saving money for their down payment.
However, the housing inventory seems to be making some gains with listings increasing by almost 20% last month. Experts believe the increased inventory may allow home owners to “trade up” and increase the number of available entry level homes for first time home buyers.
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