These Interest Rates Won’t Last Forever
Investors: When the market zigs, you zag. That’s where the money is.
This week’s newsletter is devoted to real estate investors, and buyers who are looking to get a good price on their next home purchase.
Rising interest rates have hurt affordability, and sellers are compensating by lowering prices or waiting out the market.
Most sellers who are on the market now are not “timing the market” but are selling for personal reasons. Some are highly motivated, and some are not… overpricing their homes and hoping for the best.
These languishing listings are ripe for “low ball offers” and aggressive negotiating with sellers.
While inventory is still tight, prices have fallen. Home prices will presumably stay low until we get interest rate relief.
THE PLAY: Buy now, and refinance into a lower interest rate when interest rates come down again.
There are many loan programs besides a 30-year fixed rate mortgage that can help keep your payments low and your interest rates down. And sellers are paying for them, in many cases.
Ask one of our lenders about “interest rate buy downs”, Adjustable Rate Mortgages and seller concessions to help you find a house you love and a mortgage you can afford.
The FUTURE: Fannie Mae has predicted rates next year to drop down to 4.75%. We’ll see.
When home prices start going up again, (my guess is next spring…) don’t say i didn’t warn you.
More people will attack me on Facebook when I talk about “affordable” housing in Seattle, because they’ll STILL feel priced out and squeezed out.
The key with Seattle real estate is really getting your foot in the door. This “breather” in the marketplace may just be the opportunity you’ve been waiting for.