The good news is that while mortgage rates have been rising, they are still historically low. In fact, the 30-year fixed rate mortgage has averaged around 4% since February 2020, which is significantly lower than the 5% plus average we saw during much of the 2000s. This means that current homeowners may be able to refinance their homes at a lower rate and save money on their monthly mortgage payment.
Also, despite rising rates, home prices remain heated in many areas across the country, making it an opportune time for sellers to take advantage of high demand and put their homes on the market. Home price appreciation is projected to slow down slightly over the next year but remain strong into 2021 — so now could be the perfect time to sell.
However, while rising rates are slowing the market, they may present an opportunity for buyers. With mortgage rates at historically low levels, homebuyers can still get great deals on homes and have more buying power than they would have had a few years ago. Homebuyers should look into their options now so that they can take advantage of these lower rates before they potentially start to climb again.
Overall, while higher mortgage rates will continue to put pressure on the housing market in the short term, it also presents some potential opportunities for both buyers and sellers alike. Those looking to buy or sell should assess their options now as we move closer towards 2021.
Not only are mortgage rates still low, but home prices have also started to come down, giving buyers more negotiating power. For sellers, it’s a good time to put their homes up for sale as there is still demand from buyers looking to take advantage of the lower rates. All in all, while there is uncertainty in the housing market due to higher mortgage rates, there are also some great opportunities available for both buyers and sellers.
It will be interesting to see how things play out over the course of 2021 and beyond. We’ll keep an eye on inflation and mortgage rates so that we can provide you with updates over the coming months. Stay tuned!
In the meantime, if you’re looking to buy a home or sell yours, reach out to us and we can help guide you through the process. With our knowledge of the housing market and expertise in mortgage financing, we’re here to make sure you get the best possible outcome. Get in touch today!