Monday, November 28, 2022 / by Brad Brethouwer
The real estate market is changing, but there are still opportunities.
Today, I’m here because of the mortgage rate situation. It’s not news to anyone who follows the real estate market that rates have gone up significantly. They’re hovering around 7%, and a lot of people are freaked out because they are too young to remember when rates were above 5%. Rates are not particularly high, historically speaking. Still, they have shot up dramatically in the last few months.
The important thing to remember in times like this is that you marry the house, but you only date the interest rate, meaning that the home is long-term, but the rate is temporary. That's why I recommend you get a mortgage now and refinance down the line. When I bought my first home at 8%, I refinanced within six months because the rates dropped enough during that time. You can refinance at any time.
"Rates have gone up significantly, but there are ways to work with that."
The reason that the rates are as high as they are now is that the Federal Reserve is trying to curb the craziness in the market, which is taking a lot of buyers out of the market and slowing down home prices. The thin inventory means that we are still in a seller’s market. The buyers who remain in the market are going to see the benefit of a softening market, with the ability to refinance later on.
If you are thinking about buying or selling in this environment with higher interest rates, call my team or send us an email. We’d be delighted to help you out and find the right strategy for your specific situation.