Interest rates have INCREASED by a whopping 1% (Maybe more by the time I write this post). This has caused many buyers to rethink what they will buy and even created financing issues for buyers currently in an escrow that started when rates were lower. I am working with buyers who are now looking at monthly payments that are 400-500 dollars more per month!
That all said, it’s is still a great time to buy especially when you consider that many economists only see rates going up. Buyers who remain on the sidelines may not realize how good these new rates are until they are looking down at 7%, 8% or more. I remember when I purchased my home, 9% was a GREAT rate. That makes 4.75 seem like a steal.
Catch your breath but don’t delay, we cannot go back in time!
For sellers, if you are in an escrow, make sure the buyers can still afford your home and don’t waste time in an escrow with a buyer that cannot buy your home anymore but may not know what looms.
Hall of Fame Realtor for buyers and sellers of local Real Estate.