The recent increase in mortgage rates may cause uncertainty. I want to share some things with homebuyers:
The Interest Rate On Rent Is 100%. Remember that when you hear of 4%, 5% or even 6% interest rates.
Affordability Can Change. Raising rates can affect what you qualify for, so check with your lender and review the numbers.
Calming Market Dynamics. This means less competition and a calmer market (you may not have to bid way over asking price). A better environment to win your bid.
Rates Are Still Low. Pre-crisis mortgage rates are still historically how. Forecasts vary, but most agree, mortgage rates will continue to rise.
Overall, home values are expected to continue to rise and buying is still a strong investment. Some buyers may need to widen their considerations – explore new neighborhoods or fixer uppers to stay within budget.
For more information, contact Penny at (206) 618-5123 or email me at Penny@TheOriginalPenny.com.