Many have held off on getting a mortgage this week as the 30-year fixed mortgage rate has increased to 6.02%. The spike in rates is expected to slow down, but like all predictions made in the past, it’s equally as likely to head into a year-long era of 6-8%. Buyers will experience higher mortgage payments trying to purchase a home, fueling the ever-increasing exodus of buyers from California into other states like Texas where land is far more affordable for the average household. Since buying is hard, selling is almost equally as difficult in high-value areas, with contracts being canceled left and right. Some real estate investors—those who buy homes with the sole intent of selling them for a profit and/or renting out — have begun to show disinterest, with their demographic showing a decrease in home purchases for the first time in two years.
Good news is that if you are in the market to purchase a house, there are less competing offers from investors which makes your offer more likely to be accepted. Some may have room for negotiations in credits toward closing costs. And there is an option of refinancing your property if the rates were to dip. Contact me today at 925-216-3618 for a complete payment analysis.