Even as the housing market shows early signs of slowing, the Federal Reserve isn’t backing down on interest rate hikes in its race to cool inflation, and with more gains expected, buyers may want to consider getting ahead of the curve now. Not only are borrowing costs rising, but active inventory is steadily declining. New weekly listings have fallen significantly since July and are currently down 17.5% year-over-year, The Washington Post reports.
Though budget-conscious buyers may be hesitant to purchase at a time when borrowing costs and home prices are surging to new highs, they risk facing an even larger affordability crisis if they wait. In addition, a lack of affordability is putting a damper on buyer competition, meaning that for those who can afford for-sale list prices, now might actually be an ideal time to buy.
Would-be homebuyers who have decided to wait for mortgage rates to fall so they can afford to leap back into the market should realize that waiting isn’t going to help — they would just be swapping their too-expensive financing problem for a bidding-war pricing problem as the number of houses for sale shrinks. The best hope for homebuyers now might be to just go ahead and accept the higher mortgage rates and hope to refinance later.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency
Sales + Marketing
New-Home Sales and Navigating the 3 D’s: Death, Divorce, and Downsizing
Here’s how home sales experts manage challenging lifestyle changes with and for their buyers