Earlier this year we saw rates for a 30-year home loan in the mid 3% range. Today they are almost 5% and climbing!
As we always advise, the future is never a certainty, but many industry experts feel that we could be headed for rates breaking the 5% threshold.
While this all seems like doom and gloom, the reality is somewhat different.
Even at 5%, the cost of a home loan is still very reasonable and competitive with most times in the past. The ultra-low rates we've been seeing more recently set new records and were never going to be sustainable in the long term. Well done if you took advantage of them!
Crucially, however, buyer sentiment will not evaporate. There may be a short period of adjustment as buyers acclimatize to the new situation. But it's equally true that, with rates expected to rise further, there will also be a greater sense of urgency to lock in as low a rate as possible.
Remember also that our area continues to see a huge influx of new residents from other areas, many of whom are cash buyers, or effectively downsizing from more expensive locations.
Therefore, if you're considering listing in the near future, it makes a bunch of sense to accelerate those plans if you can and take advantage of what shows every sign of being yet another extremely busy early spring selling season.
Waiting is not the best decision right now.
We'd be pleased to advise you on your individual situation so please reach out to us at 435-327-2090 today.
