Is it a good time to buy? When should I list my home? We hear both of these questions a lot. Both questions are valid and both questions have multiple factors to consider. But, one common factor is what the mortgage interest rates are.
As a Buyer, you want to make sure that you’re buying at a time that the interest rates are low and thus, making your purchase a good financial investment. Right now, interest rates are low. But, will they stay low? You’ll want to find a mortgage broker that helps get you pre-approved and be sure to ask them about how to lock-in your interest rate. But maybe you can’t get pre-approved and you need to fix some items on your credit. So 6 months from now, will the rates still be low? There are many things that affect interest rates and First World Mortgage of Southington has a great weekly Real Estate Market Overview that gives you a weekly mortgage rate summary. Call a mortgage broker today before you see today’s impressive rates vanish!
As a Seller, mortgage rates will absolutely affect your ability to sell and when. If
rates are high, there will be less buyers out meaning that a high inventory and low buyer atmosphere may be created, leaving you struggling to sell your home because buyers have their choosing. However, if rates are low, you’ll see yourself in a situation where there are a lot of buyers and not enough inventory (which is what we’re currently dealing with). Therefore, a home priced appropriately for the market should sell within a great timeframe. According to the CT Association of Realtors, homes are currently selling at a 1.8% increase from this same time last year and there has been a 6.4% increase in the amount of homes sold compared to last year. In addition condos and townhouses, are seeing an 8.8% increase in price and 8.9% increase in total units. In essence, sell now!
Whether you’re a Buyer or Seller or both, the mortgage interest rates will affect your next real estate transaction so be sure to stay up-to-date on them. Then, when you’re ready contact us to Buy and/or Sell! Until then, find out your current budget affords you in today’s market….or find out what your home will sell for here.