Low Inventory, Stable Home Values and Rising Interest Rates - What should you do?

We had some big news this week in the mortgage world and, unfortunately, it's not what we'd like to hear. 'Mortgage Rates Top 7%, Hitting 21 Year High' was one of many headlines.

The swing in rates over the past 18 months has created a challenging market for home buyers (especially those buying for the first time!), up against crazy low inventory and prices that aren't falling enough (if at all) to help affordability. Below are a few of my thoughts for those shopping right now...

1. Buy what you can afford today, and that may not be your dream home. The equity you build in this home will be used for your next home, and the one after that, and so on. 'Trading up' in Real Estate has long been known as a practical and safe investment.

2. If you're holding off buying because of the current rate remember that if you do buy a home today there are two possible outcomes for your interest rate in the future - 1) Rates go up, and you're happy you locked in now. 2) Rates go down and you have the option to refinance but will be glad you locked in today's sales price. If the 2020/2021 markets taught us anything about rates, it was that as soon as they drop, the bidding wars begin and home prices rapidly increase.

3. Make sure you have a great Realtor and Lender working for you. They both should fully understand your goals and be advocating for you whether that's negotiating the winning offer in a bidding war or comparing loan products and options like buying down the rate, ARMs, and more. If there is one thing I hear most from my customers after they talk with my husband, Ryan, (Mortgage Broker/Owner at Hudson Mortgage Solutions) it's that they had no idea there were so many financing options. No home purchase or loan approval process will be the same as another, and in this market, you can't afford to settle for a one size fits all service.

If you have questions about whether or not you could make the move you've been wanting to please don't hesitate to reach out. I would love to strategize with you and help you reach your goals!

As always, thanks for being here!

- Lindsey