Mortgage rates continued their ascent this week, reaching a two-month high and flirting with seven percent yet again. The recent boomerang in rates has dampened already tentative homebuyer momentum approaching the spring, a historically busy season for homebuying. While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines.
We are seeing increased inventory and longer days on market. Interest rates are still sidelining potential buyers. If you need to buy or sell in today's market, sound real estate fundamentals are the only way. Analyze the property. Understand the market value. Sometimes it's okay to pay a little bit more to secure a forever home, but if you don't love the home, make sure you are comfortable living there for 3-5 years.
