The opportunities for a homeowner selling their home couldn’t be more ideal. Competition from other listed properties is declining. Sales are way up and mortgage interest rates are still very low. But, people selling their homes may not want to wait to assume that present conditions will be the status-quo during the coming months.
The ideal window of opportunity could be closing based on mortgage interest rate increases. In the past several weeks alone mortgage interest rates have increased .5%, making it more expensive for buyers to purchase a home. Many buyers are finding themselves having to accept less desirable homes in order to qualify for mortgage loans. Conversely, buyers that can afford to pay more or want to avoid having to, are deciding to buy now before interest rates increase even further. In other words, the recent jump in interest rates, coupled with the belief that rates will continue to rise, is motivating even conservative buyers to move ahead with their purchases. It’s not just about prices anymore, which are increasing, it’s also about the increase in monthly payments.
A big question will be whether recent sales activity includes sales from buyers that would be purchasing, but have decided to move their plans up to take advantage of the lowest available mortgage interest rates. If this is happening, there could be a temporary lull in future sales. It’s been said that timing is everything. If there are more buyers now and fewer in the future, it makes complete sense for sellers to exploit the very narrow window of sales opportunity that exists right now.