Posts from December 2022

You may have noticed that mortgage rates are on the rise. We have seen rates increase from three percent to four percent, earlier this year, up to nearly eight percent now. Rising inflation is mostly responsible for this. The Federal Reserve, which is responsible for setting the interest rates that directly affect the mortgage rates, has been very clear on their stance with the housing market. Jerome Powell, who is The Federal Reserve Chair, has said the Federal Reserve is trying to "reset" the housing market after prices skyrocketed up to all-time highs in 2022. United States Home prices increased nearly 40 percent in only two years.

            We are now in a totally different housing market. The market has softened, and the market is more buyer friendly. The only problem is that mortgage rates are the highest they have been in nearly fifteen years. What can buyers do to combat this high cost of borrowing?

            You can "buy down" your...

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You may have noticed that the real estate market has changed dramatically recently. We saw the strong seller's market peak earlier this year. Homes were selling at all-time high prices with record demand from buyers. We were regularly seeing multiple offers over list price with cash buyers typically wining these competitive bidding wars. I received 23 offers on one listing and 21 on another. This has all changed.

With mortgage rates up from three percent and four percent to seven and eight percent, the market has really changed. The number of homes available for sale, which was a huge problem earlier this year, is slowly increasing but demand has cooled off. Many buyers have decided to wait to purchase until interest rates go down. These two developments, along with a historic inflation increase, have slowed down the real estate market considerably. Listings are taking much longer to sell, weeks and months instead of days. The number of showings has decreased considerably as...

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