Will the Rising Interest Rates Settle the Housing Market?

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One of the catalysts for the shift in the market has been the lowered interest rates. Interest is just the cost of borrowing money, but when it comes to a mortgage, it matters tremendously. The lowered interest rates have held the housing market in a tight grip. Since the rates are so low, it created a demand for houses. This demand outgrew the inventory, and BOOM. An unprecedented sellers market began. But, with the interest rates rising, will it stay that way?

Rising Interest Rates and What It Means for the Housing Market

In the past two years, the housing market has boomed. It has become increasingly difficult to get an offer accepted, especially if you are a first time homebuyer. Some houses are only lasting a day or so on the market! Some buyers are even waiving an inspection just to make sure that their offer sticks out above the rest. This demand kept growing, since supply was low, but the interest rates were even lower. 

But, now we are seeing interest rates slowly start to rise. While we can only speculate, these rising interest rates could mean that the housing market may start to slow down. According to the Mortgage Bank Association, the average 30-year fixed home loan rate is 5.7%. This is a jump from what it was last year. 

Experts are speculating that this jump may cool off the housing market and slow buyers down. 

Is Now a Good Time to Buy?

While the housing market may cool off in the next few months, it may still be the right time to buy! If you are looking for a Realtor to guide your way through the housing market, look no further. 

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