Why Rising Mortgage Rates Push Buyers off the Fence

Why Rising Mortgage Rates Push Buyers off the Fence

If you’re thinking about buying a home, you’ve probably heard mortgage rates are rising and have wondered what that means for you. Since mortgage rates have increased over two percentage points this year, it’s natural to think about how this will impact your homeownership plans.

Today, buyers are reacting in one of two ways: they’re either making the decision to buy now before rates climb higher or they’re waiting it out in hopes rates will fall. Let’s look at some context that can help you understand why so many buyers are jumping off the fence and into action rather than waiting to buy.

Why Rising Mortgage Rates Push Buyers off the Fence | MyKCM

A Look Back: How the Current Mortgage Rate Compares to Historical Data

One factor that could help you make your decision to buy now is how today’s mortgage rates compare to historical data. While higher than the average 30-year fixed rate in recent years, the latest rates are still comparatively low when you look at the bigger picture of where rates have been since 1971 (see graph below):

Why Rising Mortgage Rates Push Buyers off the Fence | MyKCM

Mark Fleming, Chief Economist at First Americanexplains it like this:

“. . . historical context is important. An average 30-year, fixed mortgage rate of 5.5 percent is still well below the historical average of nearly 8 percent.”

If you’re deciding whether to buy now or wait, this is important context to have. Today’s mortgage rate still gives you a window of opportunity to lock in a rate that’s comparatively lower than decades past.

A Look Ahead: What Happens if Rates Climb Further

The buyers who are springing into action now are also motivated to make their move because they know rates have risen steadily this year, and they’re eager to get ahead of any further increases.

Why? When mortgage rates climb, they impact the monthly mortgage payment you’ll have on the home you’re buying. Basically, it’ll likely cost you more to buy a home if you wait. Experts say mortgage rates will rise (although more moderately) in the months ahead. Odeta Kushi, Deputy Chief Economist at First Americanexplains:

“. . . ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”

So, if you’re ready and financially able to buy now, it may make more sense to get off the fence and make your purchase sooner rather than later. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), says:

With even higher interest rates on the horizon, I don’t see any reason to hold off from purchasing a home right now. If you feel financially secure, you should start looking for a home.”

At the end of the day, there is no perfect advice on when to buy a home. What you should do depends on your goals, your finances, and your personal situation. Use this information with the help of local real estate professionals to make an informed decision on what’s best for you. The Mortgage Reports sums it up best:

“. . . if you’re on the fence about whether to buy now or wait for a better deal, buying sooner rather than later might be wise. That said, home buying is always a personal decision. Whether you should buy in 2022 depends on your financial situation and the local housing market where you live.”

Bottom Line

For many buyers, rising mortgage rates are motivating them to act now and make a purchase before rates rise higher. To decide what move is best for you, let’s connect so you have expert advice on your side.

If You’re a Homeowner, You Have Incredible Leverage When You Sell Today

If You’re a Homeowner, You Have Incredible Leverage When You Sell Today

In today’s housing market, homeowners have a great opportunity to sell their house and receive the best terms for their personal situation. That’s because there’s a limited number of homes for sale, which is creating competition among buyers. Right now, homebuyers want three things:

These buyer needs give you an amazing advantage – also known as leverage – when you sell.

If You’re a Homeowner, You Have Incredible Leverage When You Sell Today | MyKCM

What Does This Mean for Sellers Today?

You might already realize this enables you to sell at a good price, but you’re also in a great position to get the best terms to suit your needs.

According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average home sold is receiving 4.8 offers. That’s why there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, you should look closely at the terms of each offer to find out which one has the best options for you.

And if you have questions at any point in the process, remember your trusted real estate advisor can help. They’re experts who understand the fine print, know how to compare the terms of various offers, and will help you select the best one for your situation.

Bottom Line

If you’re thinking of selling your home, know buyer demand in today’s market gives you a great opportunity to get the best terms and price when you sell your house. Let’s connect today to discuss how much leverage you have as a seller in today’s market.

Should You Update Your House Before Selling? Ask a Real Estate Professional. [INFOGRAPHIC]

Should You Update Your House Before Selling? Ask a Real Estate Professional. [INFOGRAPHIC]

Should You Update Your House Before Selling? Ask a Real Estate Professional. [INFOGRAPHIC] | MyKCM

Some Highlights

  • If you’re deciding whether you should make updates before you sell your house, lean on your trusted real estate advisor to be your guide.
  • In today’s sellers’ market, buyers have limited options and may be more willing to take on repairs themselves.
  • If you’re thinking about selling your house, let’s connect so you have expert advice that’s customized to your home and our local area.
Green Team New York Realty Is On Top!

Green Team New York Realty Is On Top!

When choosing a Realtor, there are many factors to consider. As a buyer they will help you determine your offer price, so you don’t overpay. As a seller, they will help to ensure you get the best price for your home.  A local realtor knows the area, the neighborhoods, the community, and its resources. Therefore, they can direct you to areas based on your needs and wants.

Green Team New York Realty is ranked the #1 Independent Agency in all of Orange County, NY. Ranking as #5 in OCNY, they sit in the Top 1% of all Real Estate Offices in Orange County. 

Green Team New York Realty has a strong dedication to their clients and superior knowledge of the area and marketing. This is why they are the #1 Real Estate Office in Warwick, NY; closing the 2021 year with $164,308,848 in sales volume. 

Whether you are a buyer or seller, when choosing Green Team New York Realty to represent you, you are working with the top agents in Orange County. Many, if not all, of the sales associates are long-time residents entrenched within the community. Thus, they have an edge with an unparalleled knowledge base of the area. Due to this, Green Team New York Realty has soared to the top of the real estate ranks in the Hudson Valley not only competing with but but out-selling many of the nation’s top-named regional and national franchised agencies.

 

Green Team NJ Realty is on Top!

Green Team NJ Realty is on Top!

Choosing a realtor to represent you is one of the most important decisions you make. As a buyer they will help you determine your offer price, so you don’t overpay. As a seller, they will help to ensure you will get the best price for your home.  A local realtor knows the area, the neighborhoods, the community, and its resources. Therefore, they can direct you to the best areas based on your needs and wants.

When choosing Green Team New Jersey Realty to represent you, you get the top agents in Sussex County as a buyer or a seller. Many, if not all, of the sales associates are long-time residents entrenched within the community. Thus, they have an edge with an unparalleled knowledge base of the area. Due to this, Green Team New Jersey Realty has soared to the top of the real estate ranks in Sussex County. Not only does Green Team Realty compete with the nation’s top-named regional and national franchised agencies but out-sells many of them. 

Green Team New Jersey Realty is in the top 1% Real Estate Offices in Sussex County, NJ. Dedication to clients and superior knowledge of the area and marketing is why they are chosen to represent more Home Buyers than 99.3% of all other Real Estate Offices and Green Team sells more listings than 98.4% of all Real Estate Offices in Sussex County, NJ. Houses listed with Green Team sell faster than the average for all other Real Estate Offices in Sussex, NJ.    Green Team New Jersey is the #1 Real Estate Office in Vernon, NJ. In the past year alone they have had over $69,000,000 in sales volume.

 

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