Spring House Market

Mortgage Rates 30-Year Fixed There is some good news as […]

Mortgage Rates 30-Year Fixed

There is some good news as we move into the spring house market. Mortgage interest rates are trending downward. Over the holidays, they were averaging 7% for a 30-year fixed mortgage. For a mortgage loan of $500,000, this would be a $3,325 monthly mortgage. The average 30-year fixed is at or near 6%, which would be a $2,998 monthly mortgage.

Now is a good time if you’ve been waiting to lock in your prequalification loan to home shop. The housing market has shifted into a “balanced market.” As a home buyer, this could give you more of an advantage in the sale price over the past several years.

If you’re a homeowner waiting to refinance to complete a real estate investment purchase or some renovations, now is a great time to consider making your move.

Spring House Market Mortgage Rates

There is a simple way to gauge buyer demand in the spring house market based on the mortgage interest rates. The lower the interest rates, the more robust home buyer demand is. The higher the interest rates, the lower buyer demand is.

Housing Supply is Still Low

Thinking of selling? Buyers still have slim options in today’s housing market.

There are two reasons housing inventory is still low. First, many homeowners are rate locked. They have locked into a low-interest rate from the Covid crisis. They want to sell but don’t want to shift to a higher mortgage rate.

The second reason there are not many homes on the market is that many homeowners would like to downsize but don’t know where they would move to. If they want to stay in the same area, they might not be able to profit from enough equity to make a move into a smaller yet better property.

We have this conversation a lot with clients. Typically, the decision to stay or move comes down to lifestyle. The logistics of the home are vital. It may be a wash on paper, but if moving creates a better lifestyle, it may be well worth the move.