1. More Inventory, Less Competition
As mortgage rates continued to increase, buyer demand has started to decrease. If you have decided to continue your house hunt, then that means more inventory from which you can choose and less competition when you choose it. Don’t get me wrong, inventory is still less than ideal, but the homes that are on the market are sitting longer than even a few days. You actually have a chance to sleep on your decision in most cases. Less competition means you have more leverage and more leverage means no more inspection or appraisal waivers…which is great news for buyers. Don’t delay! Click Here to START YOUR HOUSE HUNT RIGHT NOW
2. You Date the Rate & Marry the House
I have to admit that I just heard this phrase on a podcast a few weeks ago, but it makes total sense. Very few people keep their original interest rate throughout their time owning a home. Even if rates are high when you purchase your next home, as soon as they come down, you can refinance and get it down again. Keep reading reason #3…many lenders are helping you do just that!
If you need a new home…more space, different location…whatever the reason, if you need it, don’t let the interest rates stop you from moving forward with a purchase right now. Choose a home that will work for you long term and don’t be afraid of changing the mortgage rate down the road. Get Your House Hunt Started Today!
3. Higher Mortgage Rates = Better Lending Options
I’m not crazy, so hear me out. Lenders are going all out to provide programs to those of you that haven’t quit looking for a home. Yes mortgage rates will mean a higher payment, but remember, you date the interest rate and marry the home! Interest rates aren’t forever and in this market, here are some of your out of the box mortgage options:
Temporary Buy Down Loan: A temporary buy down loan will bring the interest rate down temporarily and allows you to ease into the full mortgage payment. There is one local lender offering a 2-1 Buy Down where the seller pays for your buy down and you get a two point discount the first year and a one point discount the next year. Mortgage rates are expected to be lower next year, so this lender is offer a free re-financing in 9 months.
7 or 10 Year ARM: Ever since the real estate crash of 2008, you have heard do not get an adjustable rate mortgage, however, if you do it correctly, they can work to your benefit. Many local banks and credit unions are offering fantastic rates on these loan programs. You are guaranteed your rate for 7 or 10 years, depending on your loan, but you can refinance anytime during that period for a lower mortgage rate. It’s a win-win because right now you get a mortgage rate lower than the 30 year fixed and you can watch for better rates in the future.
First Time Homebuyer Programs: I really think the mortgage rate increase has hurt first time buyers worse than any other segment of the home buying population. Not only have they had to settle because of being priced out with the rising values, but now they are being forced out because of the rising mortgage rates. There are many loan programs available that provide first time home buyers with down payment assistance…including one from South Carolina State Housing that provides up to $8,000!!! That is money you can use to make up the difference with the interest rates and not let them get you down. Then in a few years, upgrade or re-finance.