In case you didn’t know, the past year saw the lowest mortgage rates in the history of real estate.
So, if you are waiting for those rates to come back down or go down more, you may be waiting a very long time.
What’s important is that while homes right now may be less affordable than they were a year ago, they’re still extremely affordable.
If we look at the 30-year mortgage rate chronicled by Freddie Mac, we can see the average rates by decade:
While experts don’t project that mortgage rates will rise a large amount, any increase would mean an increase in monthly mortgage payments.
A couple decimal points may not seem like a lot to most people, but it could make or break someone’s budget.
For buyers that are playing the waiting game, the best advice is that a rise in mortgage rates coupled with continued home price appreciation only one thing, paying more for the house they'd buy now!
Inventory has been, without a doubt, the biggest player in the anything but ordinary real estate market we’ve experienced in the last two years.
The good news is, there are many factors that lead industry experts to anticipate a rise in homes for sale.
Of homeowners planning to enter the market in the next year:
The other big factor playing into a possible rise in inventory is the large amount of equity accumulated nationwide in 2021. According to experts, homeowners gained an average of $56,700 in equityin the past 12 months, a big incentive for sellers to list this winter.
While more inventory may take a bit of the edge off of today’s competitive market, it’s important to remind your clients that it doesn’t mean prices will fall or homes will become more affordable. There will just be more available to choose from.
Please feel free to call me with any questions at 817-952-9000.