I know. Interest rates remain high and buyers are deflated. But once interest rates go down again, there will be another challenge.
Generally speaking, interest rates and home prices behave like a seesaw. When rates go up, prices typically start going down. This is because fewer people are looking to buy. Demand decreases and prices drop in response.
We saw this happen last August. After interest rates had been rising consistently for months, there was a little dip where they briefly hit 4.99% During that period – a month that real estate sales are usually low – demand for houses increased 18%. That just does not happen in August!
It’s a mistake to think that both rates and prices will go down at the same time. If you’re trying to time your home buying based on that belief, you are likely to be very disappointed. Instead, embrace the notion that the best time to look for a house is whenever you want to move.
There are definitely challenges in this market, particularly with inventory being low. But interest rates should not deter you from looking. The truth is, rates will go down again at some point. When they do, you can refinance your mortgage at a lower interest rate.
There’s a saying in the industry: Marry the house; date the interest rate.
As a full time agent with over 20 years experience, I can help guide both buyers and sellers through this challenging market.
Call or text: 973-809-5277