There’s one thing we can always predict about the real estate market. It’s unpredictable!
Any good real estate professional will tell you that trying to “time the market” when buying or selling a home is like trying to win your down payment at a casino slot machine.
But it doesn’t take an expert to see that mortgage rates are slowly creeping higher. So while it’s impossible to predict exactly what might ultimately happen, many market watchers believe we’ll continue to experience rising mortgage rates as 2021 goes on. For that reason alone, now could be the best time this year to get shopping.
Read on for details. And check out a few other notable reasons that this year might be a good one to buy a home.
1. Rising rates are still low. We aren’t seeing the record lows home buyers enjoyed this past winter, but they’re still great compared to what we’ve seen historically.
According to the Mortgage Banker’s Association, a 30-year fixed-rate mortgage will likely reach 3.4% by the fourth quarter of 2021. That’s still a great rate for most borrowers so don’t let rising rates scare you off home shopping.
2. Potential for foreclosures could boost supply. President Biden’s COVID-19 mortgage forbearance expires this summer (late-year for those who were granted extensions). As the pandemic payment pause comes to an end, cash-strapped homeowners could be unable to cover their housing costs. That typically means more banks taking over homeownership. And for you? That means more deals.
In addition to foreclosures, as the economy starts to slowly rebound and people go back to their offices, we could see more people moving for work. So that could put more homes on the market in the upcoming season.
3. Rising supply will help stabilize prices. With supply low in early 2021, some agents reported a huge increase in listing prices. Some houses had multiple offers and a very quick turnover. But rising rates plus more homes on the market can be a formula for leveling the balance in home listing prices. And obviously, more houses at better prices increase a buyer’s chance to get a better deal.
Also, tighter credit restrictions can put a dent in the number of people home shopping. Buyers who can still get a loan might just find themselves in the driver’s seat.
When the economy is uncertain, home builders, developers, and families selling their houses often need as much cash as possible. Borrowers can take advantage of the opportunity to negotiate for a better deal on their home sale and–until rates go back up again–more affordable monthly mortgage payments from mortgage lenders.
Be patient and take the proper steps to get your dream home this year.
And–everyone’s #1t house-warming gift to themselves–don’t forget to get a Clean Title, too!
Clean Title, LLC, is researching the past to protect your future!
We’re proud of our track record and the recommendations our clients have shared. (Check out some of our reviews on our Facebook page).
With a blend of exemplary service and professionalism, we ensure our clients know exactly what’s happening every step of the way. We want you to feel confident that when you sign on the dotted line, you’ll be turning a house into a home.
Check out our home buyers’ Clean Title FAQs and reach out at 985-277-5095 anytime with questions!