We believe that buyers and sellers are at a unique point in time right now: a stabilized market and continued low interest rates. But, as interest rates move upward, the buying power is goes down. as this chart illustrates.
Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates are still below 5%.
However, sellers should realize that waiting to make the move while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can buy will decrease.
Here is a chart detailing this point:
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