If you’re looking to sell your current house and purchase a new one, but don’t want to give up your current interest rate – you’re not alone.
It’s actually one of the factors contributing to the slow housing market right now.
During the pandemic, many American home owners took advantage of the historically low interest rates by refinancing. Many however, have outgrown their current house and would like to expand elsewhere. However, doing so would mean taking on today’s significantly higher interest rates.
This standoff of sorts is leaving would-be homebuyers with a very low inventory of affordable homes to pick from. Experts are expecting the current market conditions to last until mortgage rates begin to drop.
So what options are out there for homebuyers?
Fiduciary financial planner, Jeremy Eppley recommends setting up notifications for apps like Zillow to get first notice when an affordable home lists.
Financial planner, Alvin Calos suggests having everything ready to go to make a competitive offer. This means getting pre-approved for a loan before you go home shopping. He adds to stick to your budget and be willing to walk away if need be.
That budget needs to be reasonable though. Financial planner, Richard Cooke has been hearing a lot of people justify making a higher offer by expecting to refinance when rates go down. This could be risky though – as there is no telling when the rates will drop.
It’s also important to remember that there are many different home loan options out there that can be catered to your specific financial needs. FHA loans and VA loans can provide a up to 96.5% or even 100% financing, respectively. They can also be issued to borrowers who have damaged credit or aren’t able to make a significant down payment.
Things aren’t completely hopeless for buyers though. Current homebuyer traffic is still higher than it was pre-pandemic. Be sure to reach out to a real estate or mortgage professional for the best tips on purchasing a home in today’s market.
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