They’re BACK!!! Remember those preapprovals that made a choice to stop looking for houses until the rates dropped and home prices went down? Guess what? THEY’RE BACK!!!
Each week as rates have continued higher and as inventory of available homes remains tight, those who believed the “experts” on social media, that rates and home prices were soon to fall. Well guess what? People are discovering that it was a bad move to sit and wait.
Think about those who didn’t want to buy when rates moved past 4%; I bet they wish they had a 4% mortgage now! Maybe some held on until rates went past 5%; I bet they would love that 5% rate in their new home right now! Remember those just a few short weeks ago who were distraught when thinking about a mortgage rate above 6%? I bet they would be thrilled to lock in that 6% rate if you put it in front of them now.
How long can people afford to try and wait for things to come back to where they believe they should be? Have some now be priced out of EVER getting a home, because between price appreciation and higher rates, they can’t qualify or save enough money to get into that home. Sad but true, waiting can be devastating; especially because they could have easily bought, and then refinanced if rates went lower. But will they ever go low enough to make it worth the wait?
Historically, rates on a 30-year fixed loan have been between 2.5% and 18.5%. The average in that span is about 7.75%. While I don’t believe we will see 18.5% again; I also don’t believe we will ever see 2.5% again. While we would all prefer to have lower rates; sometimes sacrificing average for the hope of excellent, can leave you in a very poor position! That is why I am seeing more and more of those people who move into “waiting mode”, realize that they needed to get into “buy mode”, and to do it quickly, before they lost any more ground! Have you called all your past preapprovals that went to the sidelines and had a conversation about what the cost of waiting has been? Maybe that’s a call you should be making?
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