Many current homeowners bought or refinanced their houses during the health crisis of the past few years. Rates were at historic lows at that point — but what about now?
Interest rates doubled in 2022 from what they were in the pandemic years. Because of this, some homeowners put moving plans on hold. Why lose the low mortgage rate on their current home?
Today, 93% of outstanding mortgages have a rate at or below 6%. What does this mean? That an overwhelming majority of current homeowners have a rate under what they’d get if they made a move. However, a homeowner has more to think about when selling their house.
"Sellers who don’t have to move won’t be moving. The most common sellers will be: Homeowners downsizing…people moving to get more space…households looking for better schools…etc.” ~ RealTrends
As a seller, you have many things to consider besides interest rates. A recent report from the National Association of REALTORS® illuminates the top reasons people have decided to sell over the past year:
- 21% – want to move closer to loved ones
- 11% – moving due to retirement
- 11% – neighborhood has become less desirable
- 10% – home is too small
- 9% – change in structure of household
If you’re a homeowner in the position of any of the above scenarios, it may be time to sell. Yes, your mortgage rate may be higher, but that’s not all that matters. If you want a change in location, more space, or things your current home just can’t provide, contact me today, let's strategize!...