If you are interested in staying up to date with the frequent changes of the housing market, then you are probably aware of how mortgage rates can affect the real estate decisions of many buyers and sellers in Asheville. According to the Mortgage Bankers Association, mortgage rates have increased slightly, with the average contract interest rate for 30-year fixed-rate mortgages rising from 3.03% to 3.10%. Though the rise may seem relatively small, the rise can have a domino effect on the rest of the housing market. Whether you’re planning on buying or selling homes for sale in Asheville, it is important to understand what this could mean for you. Read on for 3 things you should know about the recent rise in interest rates.
It Could Make The Market Cool Down
With prices for homes hitting an all-time high, rising interest rates could mean a market cool down. What does that look like? It looks like subdued demand. If interest rates are higher, it is less of an incentive for homebuyers to take out a mortgage to buy a home. While the increase may be slight, in a fiery housing market controlled by Sellers, homebuyers may want any excuse they can get to wait it out. But should they? Every home-buying and home-selling journey is unique. Talking to an Asheville real estate agent can help determine the best route to take in a market that may or may not begin to “cool down.”
Mortgage Applications Decreased Slightly
A measure of loan application volume by the Mortgage Bankers Association recently revealed a decrease of 1.1% on loan application volume with a seasonally adjusted basis. This decrease illustrates the slight decline in buyers’ eagerness to apply for a loan on a home. While there are more ways to buy a home than with a mortgage loan, this data can be a correlating indication of the housing market’s climate. Loan application volume can be connected to the number of buyers. And if the amount of buyers is decreasing, then that will begin to affect the prices of homes. While the data needs to be monitored for a definite conclusion, these indications could assist you in making predictions that aid in your decision to buy or sell homes for sale in Asheville.
Some Things Are Still The Same
Home prices are still rising, and interest rates are still relatively low. The average loan price for a purchase application for potential home buyers recently hit its highest level since May. That means, the increase in mortgage rates – while important – shouldn't significantly affect the rise of home prices; rather, it could just potentially slow demand. So, this means the need for homebuyers to prepare their finances is still essential. As the housing market continues to change day-in and day-out, prospective buyers can continue saving, improving credit scores, and exploring buying options. Higher mortgage rates can just decrease the speed of growth.
While no one can precisely predict the outcome of the housing market, your Asheville real estate experts are here to help you navigate your home buying and home selling goals in an ever-changing climate. Because of our housing market frenzy seen across the nation, the importance of working with reliable experts is at an all-time high. From rising interest rates to bidding wars, from first-time homebuyers to seasoned veterans, it can be easy to get discouraged, but we're here to help you stand confident in your decisions. Contact your top Asheville real estate team today to learn how you can make the most of buying or selling Asheville homes.