POST TAGSPurchase First-Time Home Buyer
Blog posted On June 22, 2022
Lately, the media and news has been portraying the current housing market as a ‘bad time to buy.’ While home prices may be high, they’re set to stabilize soon. While mortgage rates are trending higher than two years ago, they’re not as high as their pre-2010 average. Now might be a better time to buy than you think, and the tables are starting to turn in favor of buyers.
Interest rates are still historically low – Rates are certainly not in the 2% range we saw during the pandemic. But if you’re thinking that you might delay buying until rates cool off, remember that they’re not historically high when compared to pre-2010 rates. It’s understandable that the numbers seem drastically high when compared to pandemic-level rates. But we’ll most likely not see rates that low again. Rates may continue rising, so take advantage of them while you can. We offer several programs that can help lower your rate upfront and reduce the costs of interest like 3,2,1 Buydown and the All In One Loan™.
There is less competition – Naturally, with the interest rates continuing to climb, fewer buyers are looking to purchase a home. This means that there will be fewer offers being put on homes, which means that you have a more substantial chance of having the winning offer. Plus, with less competition, it’s more likely that you won’t have to make an offer significantly higher than the asking price.
Higher chance of getting a good deal – Houses are staying on the market longer and price reductions are becoming more common. This means that you may be able to negotiate a lower price because sellers are starting to entertain all offers.
Sellers contributing to closing costs - With houses staying on the market longer than usual, some sellers, including builders, are starting to get nervous. Sellers and builders are offering money towards closing costs, specifically to help pay down the buyer’s interest rate. This can help lower your rate, so you have a lower mortgage payment. Ask us about our programs that can include contributions from builders, sellers, and Realtors.
Don’t let the rising interest rates keep you from buying a home this year. There are still plenty of reasons why real estate is always an excellent investment.
We would love to help you get into your dream home this year. Reach out to us today to get the preapproval process started!
Sources: Bloomberg Homebuyer.com