Is It A Good Time To Sell Your Home With Rising Inflation & Mortgage Rates?
While it is not at a historic high, the mortgage rate has been fairly consistent over the past few years, ranging between 3%-4.5%. With inflation more than doubling over the past few years, cost of living rates has been significantly elevated. Normally, when inflation rates increase, so do mortgage rates. Surprisingly, while mortgage rates are still not considered low, they have not been as affected by inflation as was expected. Experts say this will not last long as mortgage rates & inflation will continue to climb. So, when is the right time to sell your home?
It is tricky to predict the real estate market, especially at a time like this. Because consumer rates are escalating, it is likely that the mortgage rates will soon follow. In general, any local mortgage broker will tell you that lower mortgage rates are beneficial for sellers because people are more motivated to buy. If there is a large demand in your area, then you will have more negotiation power and you can increase your profits. Since rates are expected to increase however, the market will decline because higher mortgage rates can make buying a home unaffordable.
Whether or not you should sell your home at the moment depends on a few factors:
• Are you planning on buying a new home? Low mortgage rates make it the ideal time to sell and buy quickly.
• How fast do you need to sell your home? If the market is doing well in your area, it is worth it to sell as soon as possible before rates increase.
• Do you need to sell at all? If it is financially feasible, keeping a home as an investment is usually a good idea. Unless your property is in an area with declining prices, property values tend to increase. If you can keep your investment for longer, it is recommended to do so.
If you are looking to sell your home, now may be the ideal time to do so. It would be a good idea to research the market in your area and review your finances before making this decision. While it can be difficult to navigate buying and selling your home at this time, we are here to help. R & J Capital Group will assist you through the entire process, all the while ensuring that your rates are as low as possible. Contact us today for more information.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.