Mortgage Rates Are Over 7% and We Are So Busy

This week, I want to share with you what we are seeing in the DMV real estate market.

Over the last month, 30-year fixed-rate mortgage interest rates have climbed to over 7%. We were concerned the Fall homebuying market would be very slow. But much to our (happy) surprise, we are busier than we have been all year! We attribute this robust business to interest rates and house prices.

First, we will look at the impact of interest rates. For several years, clients have been holding off buying a home because they expected interest rates to come down. Now, no one expects rates to come down anytime soon, and in fact, most people worry rates will keep rising, so it may be better to lock in now.

Also, clients have been hoping that house prices will come down. That has started to happen! We are seeing clients go under contract for less than the listing price and sometimes significantly less. They can put in offers with contingencies, such as home inspections and appraisals, and negotiate seller concessions for closing costs. We have had a seller’s market in the DMV for over five years. I am not sure if it is a buyer’s market yet, but we are definitely moving in that direction.

As we always say, you date the rate and marry the price, so now may be a great time to explore homeownership. Please contact us if you would like to get started.