I recently asked Liane Willis with Pivot Lending to provide some insight on Higher Interest Rates and the impacts on Home Values.
“I often talk to homebuyers about why this could be a good time to buy despite higher housing prices and interest rates.
In years past, when interest rates were extremely low, competition was extremely high. This made it hard to buy a home because your offer might not get accepted, or you’d have to pay more than the home was worth, or even waive issues with inspections or appraisals.
One important thing to understand is that the current shortage of homes is helping to keep home values higher. When there aren’t enough homes available for everyone who wants to buy, prices tend to stay up. It’s basic supply and demand—when there’s less of something, it becomes more valuable.
Many buyers are unsure about the current housing market and are either continuing to rent or staying in homes that don’t really fit their needs. But as long as there are more people who want homes than there are homes available, prices likely won’t drop much.
However, if interest rates go down in the future and more buyers jump back into the market, the low supply of homes would make competition greater and sellers would not have to offer deals. This is why buying now could be a smart move because many sellers are offering concessions like interest rate buydowns, lower prices, or help with repairs, meaning you as a buyer have more say.
That way, if rates go down in the future, you could potentially refinance your mortgage to lower your monthly payment.
Marry the home, date the rate!”
If you need help or have questions about Financing a home in Solterra Colorado. Here is her contact Information.
Liane Willis- Senior
NMLS# 116188
3035480094
Lwillis@pivotlending.com
