The housing market has been hot. Over the last two years, people have been purchasing homes for the low interest and cashing out to secure high equity. While I did not do either, I am loving the equity I have in my home. I did refinance to take advantage of those 2% rates. Just recently the rates have been rising. If you are in this changing market, how are you coping? Those of you who lost out on the low rates, is it too late to buy?
Looking at today’s rates you will see they are up significantly from those last month. As of today, the average 30-year fixed rate sits at about 5.49%. This is only slightly down from the 5.6%-5.8% rates from last week. If you have not been locked into a low rate, this could mean a higher mortgage. Keep in mind rates vary slightly from mortgage company to mortgage company so reach out to yours to find out specific rate details.
Most people expected as the rates grew, home prices would be reduced, or the inventory would start to fill out. While some price reductions have been seen in the past few months, the market is still hot and overpriced. Do not expect drastic price cuts right now. Analysts predict that while sales will go down, those high price tags will not. It may be years before we see a downward curve in the price of homes. If you are trying to wait this out, you are likely playing the long game. How long can you wait?
Is There Any Hope?
It is not too late to buy for some people. There are still some low rates out there. If you have great credit, do not be afraid to mortgage shop. I am still seeing rates in the 4% range. If you are a veteran or in the military, check out those VA rates. They are some of the best around. Also, if the property is an investment property, you should still go for it.
Are any of you second-guessing home buying right now or going for it? Comment below with your take on the new market.
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Shatel Huntley has a Bachelor’s degree in Criminal Justice from Georgia State University. In her spare time, she works with special needs adults and travels the world. Her interests include traveling to off the beaten path destinations, shopping, couponing, and saving.