If you have been in the market for a new home, you may have noticed mortgage interest rate swings in the last 12 months. In the early part of the pandemic, interest rates were on a roller coaster; coming off fresh highs from the stock market, rates were relatively stable beforehand. Rates shot upward, and then downward, and back up within a short period few months. It was not until we had a greater handle on the trajectory of the pandemic (coupled with monetary policy from the government) that we saw rates steadily decrease through the end of 2020. Headlines such as “Mortgage rates hit another historic low” were commonplace.
Much has changed since the end of 2020, with all American adults predicted to be eligible for the vaccine by May 1, and more than 40 states stating that they will beat that date. With the virus on the decline and a “new normal” setting in, mortgage interest rates are generally starting to rise. For buyers in competitive markets, it can be alarming to see new headlines showing that rates have increased dramatically in the last few weeks. For first-time homebuyers in particular, this news can be difficult to navigate while understanding what it means for your homebuying potential. Today’s post reviews three items to consider regarding interest rates, and what you can do to position yourself as a buyer.
In most real estate markets across the country, it is a very competitive market for buyers. According to CNN, February had a record 30% drop year-over-year in housing inventory, making it difficult for many buyers to find a home. As a buyer, the better you can position yourself before making an offer will not only make your offer more competitive, but will also give you confidence in your offer. Stockton Mortgage is here to help you in your journey.
Nick, a native of southern California, has called Lexington home since 2014. Him and his family have come to love their community; Nick says, “I agree with the popular, local t-shirt that says, ‘Heaven Must Be a Kentucky Type of Place’.”
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