Rising mortgage interest rates are affecting both buyers and sellers.
There has been a slight shift in market activity. This change hasn’t been dramatic; in fact, it’s still a strong seller’s market. However, financed offers are struggling to compete due to rising interest rates. If you’re selling, this means that pricing your home accurately is imperative. There’s a very small difference between under and overpricing your home right now.
“The market isn’t going to collapse.”
Homes still sell at or above list price but with fewer competing offers, depending on location and price. The current average 30-year fixed mortgage rate is between 5-5.5%, and experts say that they will likely continue to increase in the months ahead. Buyers have the opportunity to get ahead of that increase by buying now before their purchasing power decreases. Every 1% increase in interest rates affects purchasing power by approximately 10%.
The market isn’t going to collapse. Basic supply and demand indicate that we will be in a seller’s market for a while. However, with interest rates impacting buyers, sellers hoping to get the most out of their sales should prepare for our changing market.
If you have any questions, please feel free to reach out to me by phone or email. I look forward to hearing from you.