There has been a lot of talk lately about mortgage interest rates, including where they’re at and where they’re headed. I was recently joined by Sandra Lyons of The Mortgage Firm, one of the best loan officers I’ve ever worked with, to discuss the topic.
We are seeing an increase in rates right now, and they’re up between 4% and 4.5% for the most part. However, this hasn’t really affected our seller’s market so far. Our inventory is only at about three months, which puts sellers in a pretty good spot. The power is in their hands, and a lot of them are seeing multiple offers and offers above asking price as a result.
Interest rates are expected to creep up even further, possibly even by a full 1% this year alone. As rates go up, things will shift more toward buyers. A downward pressure on prices would make more homes available for buyers to choose from. As that happens, we will see a shift in the market toward buyers.
Right now, you have a great opportunity to buy and sell in this market. By selling, you can maximize your sale price because of the limited inventory. Then you can buy while rates are still relatively low and lock in a rate before they go up even higher. For every 1% that interest rates go up, buying power decreases by 10%.
Your interest rate is affected by things like your credit score, your income, and your down payment. If you can’t afford to buy now, it doesn’t mean you couldn’t afford it in a few months with the help of someone like Sandra. If you have any questions for her or want to get pre-qualified for a mortgage, give her a call at (407)-902-4297 or send her an email to SLyons@TheMortgageFirm.com.
If you have any other questions for us, don’t hesitate to reach out by phone or email. We would love to hear from you.