If you’re in the market for a home, you know prices are increasing. You may think that’s peculiar because we’re in a recession and people are losing jobs. However, interest rates are driving the market. At this time last year, rates were close to 4%, but now you can get a 30-year mortgage for under 3%, which is amazing.
Nationwide, interest rates are driving the market.
Since prices are increasing but interest rates are so low, you aren’t necessarily going to be paying more per month for a house. A property that was worth $315,000 last year may be worth $350,000 this year, but you would still pay $80 less per month to own it because of the lower rates. This is a win for sellers because their homes will sell quickly and for top dollar, and it’s a win for buyers because they’re paying less. However, interest rates will rise again, so it’s a win for buyers only as long as rates remain this low.
Due to current conditions, there’s a sense of urgency for both buyers and sellers. Buyers can lock in a low rate for 30 years, and sellers can get an excellent price for their houses.
If you have any questions about our market or real estate in general, call or email us. We would love to help you.