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  • Your Housing Market Questions Answered

    September 6, 2022 | Blog
  • If you have questions about what is happening in the mortgage world right now, you are not alone. Between increased mortgage interest rates, shifting inventory and leveling home prices many consumers have questions about what this all means. Don’t worry, we’ve got you covered!

    Check out our answers to the top three questions we’ve received recently…

    How Do Fluctuating Interest Rates Affect Qualification?

    One of the most important things to be aware of when purchasing a home in this current housing market is how changing interest rates affect your qualification. That’s why having an excellent Mortgage Lender is extremely important. They will help you to understand just how much interest rates can change your purchasing power.

    For example, if rates rise you could quickly realize the homes you were previously looking at is now beyond your means; it’s important to know exactly where you stand so there are no surprises like this throughout the process. On the flip side, if rates fall the amount of home you can afford may actually increase which could give you additional options for your search… That would be a great bonus! In either scenario, it’s best to have a true professional on your side to guide you through the process as fluctuating rates directly impact your purchasing power.

    Are There Really More Homes Available Now?

    In short, yes! In correlation to higher mortgage interest rates, we’ve seen an increase in inventory due to a lessened demand. As rates rise and home prices moderate, active listings are sticking around on the market a while longer. This means if you’re a buyer in this market, you’re likely seeing more supply to choose from.

    We’ve also seen some of the difficulties first time home buyers have had the past few years go away; like the sell in one day with multiple offer madness, or sellers not wanting to accept FHA offers, or help pay for the buyers closing costs.

    The additional homes available may mean it is less difficult for you to find and secure a home you love!

    Seriously, What’s Going on With Home Prices?

    Home prices have a lot of people stumped. What is really going on? On a national level, experts agree that we’re seeing that home prices are decelerating not depreciating. That means the prices of homes are still climbing, just not as quickly as we have witnessed over the past year or so.

    The past few years, sellers agents determined the fair market and proper selling price, then asked for a pie in the sky premium on top of that… And they were getting it.  Today it is more of determining the correct asking price with no additional premiums.

    In short, there’s no need to panic in this department… Things are just evening out a bit!

    Questions To Ask When Buying A Home

    Here is a link to other of our articles with questions to ask when buying a home.

    We hope we were able to clear up some confusion surrounding the housing market! If you have further questions about how to approach purchasing a home, we are here for you. Call us today at 651-552-3681 or visit JoeMetzler.com to get started!

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