What Mortgage Rate Spikes Mean for Buyers and Sellers

All good things must come to an end. America has enjoyed historically low mortgage rates for some time now, but soon that will be a thing of the past. It’s like getting to the bottom of a bowl of your favorite ice cream: it was great while it lasted, but now it’s back to the broccoli. Healthy for the market, but not quite as appealing. We’ve seen this coming for a while now, but it’s finally here – mortgage rates are going up.

It won’t be overnight, but we’re creeping closer to higher rates as the Federal Reserve attempts to influence rates without causing a negative impact on economic growth. Short-term interest rates are seeing higher jumps, but mortgage rates will continue to be as volatile as they were in 2015. Rates will bounce up and down on a daily basis, but the overall trend is leaning toward bigger numbers. It’s like trying to leave a party but getting pulled into conversations as you say your goodbyes – mortgage rates haven’t quite left the low rates party, but they’ve got their coats in hand and an eye on the front door.

This might sound scary, but it’s actually a great opportunity for both buyers and sellers. If you’ve been wondering if now is the best time to buy or sell, this the (for sale) sign you’ve been looking for. Now is the time to jump into the market while the rates are still at such historically low levels.

What does this mean for buyers? Options! As these fence-sitting sellers finally commit and pour their homes into the market, buyers will have a greater selection of homes to choose from. For some time, inventory has been at a premium, but this will change as sellers take advantage of the low rates while they still can. So if you’ve been unimpressed by the houses for sale in your area, look again; you might find that dream home at last has a sign in the yard or that new development has finally started to build.

What if you’re the one sitting on the fence about selling? You benefit from the low rates on both sides as a seller and a buyer, so the time has never been better. With other sellers bolstering inventory, you get to pass your existing home to an eager buyer, and get into something that fits your evolving home needs. Pay it forward by getting that old house of yours on the market so you can buy one of your own!

Maybe you’ve lived in pre-existing houses for years, and you’re finally at the point to build your own home. It’s a great time for that, too! New home construction is also growing, and our inventory is no exception. Check out our communities and floor plans, and see if we can help you hop on down from the fence and take advantage of low mortgage rates.

Right now, we’ve got ice cream for mortgage rates. Don’t wait till it’s broccoli to buy or sell your home.