Interest rates are rising. According to Freddie Mac, the current rate for a 30-yr fixed mortgage is 4.81%, which is up a nearly a full percentage point from a year ago. While some were concerned the rising interest rates would have a negative impact on the market, particularly with first-time homebuyers, it looks as if the changes in interest rates are doing little to dampen buyer demand.
According to First American’s most recent Real Estate Sentiment Index (which explores how sensitive first-time homebuyers are to rising interest rates), mortgage rates would have to hit 5.6% before first-time buyers delay entering the market. And because mortgage rates aren’t predicted to rise that drastically anytime soon, we shouldn’t see any negative impact on buyer interest in the coming months.
The Takeaway
If you’ve been hesitant to list your home thanks to fears that rising interest rates will limit the number of buyers, there’s nothing to worry about. Buyer demand is showing no signs of slowing. Don’t hesitate to contact me with any questions you have about the Phoenix area Real Estate Market.
Like they’ll “know it when they see it,” or it’ll be love at first site. Sometimes that happens. But a lot of times, homebuyers miss out on great homes because they make some really common mistakes.
Finding and actually getting the best house for your wants and needs (let alone at the best possible price!) isn’t as simple as just being in the market, finding it, putting it in a shopping cart, and heading to the checkout.
There’s quite a bit to the process.
My buyer’s guide will demystify the process and give you a no-fluff, in-between-the-lines look at things most buyers either simply ignore, or don’t realize. (Even some agents don’t know some of the things I cover in this booklet.)
Want to find the home of your dreams?
And also get it at the best price possible? Then download your free copy of this guide: The Ultimate Home Buyer’s Guide
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