Scary Interest Rates
One thing many homebuyers are facing right now, is high interest rates. As of right now they have officially gone up over 8%, making home purchase affordability look way different than it did two years ago. You will hear realtors saying over and over again, “they’re still historically low!”. That’s true. In the 1980’s we saw rates as high as the 18%-19% range, however I’m fully aware that you don’t care about what they were in the 80’s, you care about what we can do to get you into a home right now. So lets chat about it.
The tendancy with something like these high rates is to just say, “it’s not a good time to buy, we should just wait”. However I would love to challenge you on that a little bit! Buyers right now have a little bit of a leg up, because these sellers need to move these houses, and there are less buyers on the market because of these rates.
Many lenders and realtors are doing their best to get creative, it is possible to buy down a rate, and we have seen many sellers even offering to help buyers do so to get a point or even two sometimes lower. There are also many home loans that are assumable at those lower rates in certain situations. VA loans and FHA loans are assumable, and some sellers purchased their home using those and you could potentially assume those loans if you qualify. However, with assumable loans there is so much to know, so chat with your realtor about this.
All that to say, if you can afford to buy right now with rates where they are, you should! If you cannot, then you can look into some creative financing, or wait. Truthfully the best time to buy a home is when you’re ready, and if you’re ready now, we’re here to help you get as creative as we need to to help combat those scary rates!
