What Do High Mortgage Rates Mean ?
1) The refinancing for a lower interest rate boom is over for most. Current rates are over 5%.
2) The cost of buying a home just went up. Many buyers who were qualified for a $1.5 million home at 3.25% now qualify for maybe $1.3 million.
3) Offering over the asking price with multiple offers is more costly. With higher payments, a buyer who wanted to overbid $100,000 is now limited to $50,000, and some buyers can’t go over asking.
4) Add this all together and the real estate market, which is still in the seller’s favor, is slowing down. Many buyers no longer qualify for the same amount now that they did in January. Price appreciation is slowing and the number of multiple offers on a home is declining. Expect the market to slow further as we head into summer.
5) With the market slowing, hiring a full time Realtor with lots of experience makes a difference. Someone with fewer than 10 years experience has never seen a market slowdown. Give the Millman Team a call. We have a proven track record and
experience in all types of markets.