With interest rates fluctuating throughout the past year, potential homebuyers may be feeling overwhelmed or confused about when to enter the market. While it’s normal for rate movements to cause hesitation and uncertainty among buyers, there are ways you can protect yourself from these ever-changing conditions! Let’s explore how we can do just that.
What’s happened with interest rates recently:
As we mentioned, mortgage interest rates have been somewhat volatile recently. We’ve seen some drops—like following the SVB bank failure—and some raises following the Fed’s continued rate hikes in their attempt to cool inflation. Overall, rates are going up, though they aren’t hitting the highs we saw near the end of last year.
Inflation remains high, but it’s been slowly and consistently going down. The Fed’s rate hikes have been smaller in recent months—.25% at the last two meetings—and the Fed does expect to stop rate hikes at some point, though Fed Chairman Jerome Powell said they do not expect to cut rates this year. Expert predictions vary, but we can reasonably expect mortgage rates to stabilize and possibly drop slightly by the end of the year.
What this means for real estate:
The volatility in mortgage rates has experts disagreeing on what will happen next with real estate. While mortgage applications have gone up during recent dips, affordability remains a struggle. Experts think this spring will be slower than usual for home sales. This is market-dependent, though; home prices are up in some markets and down in others.
Despite what’s happening with rates, we have seen some good signs of the market stabilizing. We firmly believe that people should feel free to buy and sell without fear of a major crash. The question is not whether or not it’s safe to buy and sell; it’s how to play your cards right in this changing market.
What this means for you:
With the market and interest rates constantly changing, it’s impossible to predict exactly what will happen. As a potential home buyer, the best thing to do is to focus on what you can control.
Luckily, there’s a way to keep costs reasonable. The best way to reduce the influence of high rates on your budget is to put down as large of a downpayment as possible. If you’ve built up equity in your current home, you can use that equity to get into your new home with a much smaller mortgage.
When you sell your house to MarketPro for cash, you make the most of your equity. This is because we don’t take any money out for commissions or fees. Plus, you don’t have to do any repairs or prep work! Even if your current house is distressed, you can get the cash you need to fund a move into your dream home.
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania, or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.