What is the outlook for the real estate market for the spring?
BIRMINGHAM, Ala. (WBRC) – Real estate agents have been busier than ever in the past two years due to low interest rates. But now that these rates are climbing, what is the outlook for the spring?
For the past few months, Aliece Dice with eXp reality has been busy to say the least. Even though mortgage rates are going up, she says it’s still a strong market.
“The housing market is still very, very hot. It’s a good time for sellers as inventory is still low,” Dice said.
The average 30-year fixed-rate mortgage is currently 4.95%, according to Mortgage News Daily. This is the second jump in a week. If rates continue to rise, it could cool a housing market on fire due to historically low interest rates. We’re talking about interest rates in both for a lot of people.
“It may slow things down a bit because of interest rates, but people still need houses. We are coming to that time of year when people are going to sell. Spring and summer are a hot time to sell homes because the kids are out of school. With all this weather, it will always be a good time to sell,” Dice said.
For buyers, Dice says it’s still a good time to buy, but keep in mind that interest rates could continue to rise.
“Don’t deliberately delay and wait for interest rates to rise even more. Do it now while interest rates are still at a decent level,” Dice said.
Rising interest rates could make it harder for first-time homebuyers. According to Nerd Wallet, if rates rise before you find a home, try shopping in a lower price range. Indeed, higher interest rates weaken your purchasing power.
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