Many Tredyffrin Easttown home buyers today are frustrated because interest rates are low and they want to buy a home but the number of homes for sale is not keeping up with demand. This being said, many buyers are so used to low interest rates that they are not aware of just how low these rates are and any uptick is making them hold off purchasing as it impacts their buying power.
So let's look at this logically for a minute.
1981 saw mortgage interest rates at 18.63%. Since then they have steadily declined. They hit bottom in 2012 at 3.31% according to Value Penguin.
The real estate world has since 2012 been talking about how rates are going to rise as they realized that the market would push rates up, but it has happened slower than everyone thought for many reasons, global and national.
However, we saw a determined effort to push rates up over the last year to slow the economy a little to prevent inflation. This was working nicely, it was motivating many homebuyers as they saw the rising rates and wanted to take advantage of low rates before the interest rates rose too high.
However, a lack of inventory has also pushed up prices, holding back many buyers from purchasing, the rising rates has slowed the price rises a little but home prices have still been rising. In January we saw rates actually drop and settle a bit which was somewhat unexpected.
Currently, the feeling is that rates will remain in the range of 4.25-5.5% over the next year, and probably will remain under 5% for a little longer. So many new buyers though are hoping rates will fall back because that is all they have known for many years.
Folks, barring another economic disaster it is not going to happen and you would be well advised to find a home soon and get it under contract and lock your rate.
So, what is holding you back? Student loans, interest rates, lack of homes for sale let's meet and discuss options for each of these. Contact Nick Vandekar, Tredyffrin Easttown Realtor, Selling the Main Line with Long & Foster Real Estate Inc., office 610-225-7400, cell or text 610-203-4543, email Nick@VandekarTeam.com, website Nick@VandekarTeam.com.
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