What do rising mortgage rates mean for our market? Let’s find out.
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As you may have heard, interest rates are on the rise. Today, I’d like to talk about the ways this will affect our market.
For the first time since last summer, the 30-year average is over 4%. This development follows a period when interest rates were seeing record lows. But, with the economy doing as well as it is, a rise in rates is only natural.
The latest increase could simply be a temporary bump, but economists do believe we’ve seen the last of sub-4% interest rates.
Mortgage applications are also up, having risen by about 4% from this same time last year. However, this rise applies specifically to refinances. Applications for new home purchases are staying fairly steady.
"Ultimately, the growth in mortgage rates shouldn’t affect the number of eager homebuyers."
Another important change we can expect from our market has to do with inventory. Here in East Cobb, we expect to see a doubling or even tripling of inventory following spring break. This is fantastic news for our buyers but could cause issues for sellers who have been waiting to list.
So, what does all of this mean for you? Ultimately, the growth in mortgage rates shouldn’t affect the number of eager homebuyers.
However, the rise in mortgage rates could cause inventory to pull back even more if homeowners choose to stay put.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.