Many homeowners thinking about selling have two key things holding them back. That's feeling locked in by today's higher mortgage rates and worrying they won't be able to find something to buy while supply is so low. Let's dive into each challenge and give you some helpful advice on how to overcome these obstacles.
Challenge #1: The Reluctance to Take on a Higher Mortgage Rate According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):
Today, buyers' 30-year fixed mortgage rates average 7%. Thus, many homeowners stay put rather than shifting to a higher-borrowing property—mortgage rate lock-in impact.
The Advice: Waiting May Not Pay Off As inflation cools, analysts expect mortgage rates to decline this year, but that doesn't mean you should wait to sell. Mortgage rates are typically unpredictable. Home prices are rising again. Move immediately to beat soaring property costs. Refinance later if analysts are correct and rates decrease.
Challenge #2: The Fear of Not Finding Something to Buy Fewer properties will hit the market when homeowners are hesitant to pay more. That reduces inventory.
Some homeowners are reluctant to trade up or down after locking in record-low mortgage rates.
Even while this restricted housing supply makes your property stand out to prospective buyers, it may also make you reluctant to sell since you don't want to struggle to locate anything to buy.
The Advice: Broaden Your Search Consider all your choices if the worry of finding a new house is holding you back. Fsee may expand your housing options by including condominiums, townhouses, and new homes. You may also investigate new fields if you can work remotely or hybrid. Look further from work for cheaper possibilities.
Instead of concentrating on problems, focus on solutions. Connect with me so I can help you locate the right house.