The record breaking mortgage rates we saw pre-pandemic have continued to fall, and this is great news for buyers and sellers. Let me explain...
Sellers often do not consider mortgage rates when selling their home, unless they are currently looking to upgrade themselves, which incidentally we are seeing a lot of right now. Sellers, however, typically are gaining the equity from their sale in order to make an all cash purchase or move to a monthly residence. What is being overlooked is the ability to use the low mortgage rates, and in our current historically low inventory situation, to help market their home. Typically, sellers can also receive more for their home because buyers can afford more.
According to Mortgage News Daily:
“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”
But some good news for Buyers... Inventory is Rising
Buyers, for some of the same reasons are reaping the benefit of today's low mortgage rates. Purchasing power allows not only buyers to afford more, but also allows more buyers to enter the market. Low mortgage rates, for first time home buyers is a key factor in many being able to make a down payment and still be able to afford the monthly expenses associated to home ownership. Luckily there are also many programs to help.
Buyers are also seeing inventory rise due to more sellers entering the market to take advantage. While inventory is still very low buyers are able to increase their search criteria and radius based on the new conditions.
With mortgage rates hitting historic lows, home prices appreciating, affordability rising, and the market recovering, now more than ever it's important to work with a qualified team of professionals, like the Mackenzie Rae Team and Century 21 American Homes. Whether you're buying, selling, renting or investing our team was built for you. Schedule a complimentary consultation at a convenient time and we will be happy to help you too.