If you’re a home buyer, this might be your last buying opportunity for some time. Since January of this year mortgage rates have increased consistently from 3% to 7% today. Many experts believe we could see interest rates around 9-10% next year. If you’re a buyer looking to purchase in the next 12 months this might be your best opportunity.
Last week, mortgage rates for a 30 year fixed dropped .5%! This is the largest single day drop in over a decade. Today, the mortgage rate sits at 6.61%. These lower interest rates combined with the tick down in the median asking price of newly listed homes provides a buying opportunity. The median home price dropped 7% since May of this year.
Buyers also have leverage with the drastic increase in inventory. According to realtor.com the active number of listings in January were 378,000. In October they were as high as 753,000! That is a 99% increase in housing supply since the start of this year. If you’re working with a good realtor, which you can 😉 They should be leveraging this data when negotiating the best possible price for you.
Thanks for reading!
Chris
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