Today is that Day!
If you have been sitting on the fence waiting for the market to crash or because interest rates are high… today is the day. If you start paying attention to the economic factors that affect the interest rates and stop simply following mainstream media you’ll see that rates are coming back to us. I know I have been screaming this from the rooftops for a little while now but you need to take a real look at this picture:
- Inventory levels in the real estate market are already declining again
- The Fed is starting to show cracks in their strong stance on manipulating rates upwards
- Inflationary indicators are starting to slow in some areas and completely reverse in others
- Recessionary indicators aren’t on the rise, they are here… it’s simply a matter of time!
When you look at all of this combined it means that supply is low, rates will come back soon (we’re thinking possibly mid 5’s in the next couple months) which will increase demand… Low Supply + High Demand = Bidding Wars & Increased Prices. Would you rather pay a lot more at a low interest rate or pay a lot less and a temporary higher interest rate and still get that low interest rate a few months from now??
Oh and by the… way very soon the FHFA will be increasing rates for segments of the market. This is to help lower income buyers be able to better afford purchasing a home. In some ways though, this means higher purchase interest rates for the middle class (those with great credit but maybe not a lot of liquidity to put down large down-payments). This may be the last great time to buy for at least a couple years.