Don't Worry About Rising Mortgage Rates
After a year-long decline in mortgage rates due to the pandemic, rates have climbed to over 3% for 30-year fixed mortgages. The recent stimulus package and ongoing vaccinations may cause job growth and market confidence will also lead to higher rates. That won't slow down the housing market, though.
Rate increases could price some buyers out of the market especially in hot markets like coastal California, Austin, Texas and Phoenix, Arizona. Some homebuyers are making last ditch efforts to get into a home before rates climb higher. The window may also be closing on homeowners looking to refinance. Higher mortgage rates have also cooled the demand for refinance applications. Refinancing is super sensitive to changes in the mortgage rate and the slightest rise in rates will stop applications.
The pandemic has made people realize that they want a more comfortable living space with a fenced yard and room for a home office. That hasn't changed. And many people are looking to migrate from coastal metropolitan areas for better cost of living and quality of life. So, even though rates are higher there will still be an active market because of the low inventory.
If you are considering buying a home in the next three to five years, today is probably a better time to do that than tomorrow or next year. 3% is still a low rate.
If you are in the market for a home, let Veta help while the rates are still low.
Veta The Realtor