Mortgage Rates Come Into Play When Entering Housing Market

If you are lucky enough to have an all-cash home purchase then you will not have to worry about mortgage rates. However, a large portion of the country are subject to these rates which are thankfully trending downwards. This is also coinciding with an increase of inventory that is being boosted by the arrival of Spring. This week marks a four-week decline in rates which corresponds with an influx of buyers entering the market.

Mortgage applications were also on the rise this week. While the rates are expected to continue to fall some home-buyers just can't wait any longer to jump the market. The feeling often being that “you snooze you lose” or FOMO, the Fear Of Missing Out, can come into play. It is also extremely important that you shop around for the best rate possible before heading out. Many mortgage lenders can vary when it comes to securing the best rate. Do your homework. It can translate into significant money savings throughout your mortgage.   

New listings of homes rose over the last few weeks with overall inventory trending flat recently. This is still a positive because the inventory did not decline! As we come out of the winter season people will start listing either out of necessity (i.e new baby, changing family situation, job change) or they just can’t wait any longer. 

While mortgage rates are “expected” to fall even more when the Federal Reserve makes their decisions on what to do about the interest rates it may take some time. The Feburary jobs report, which will be released tomorrow, along with other factors will have an impact their decision. However, they may not be in a rush to lower rates as inflation is still trying to right itself.

Overall, whether you can wait or not, it might be the right time to dip your toes into the housing market. It is important to be smart about your choices and to do your research as best you can. In order to make some smarter decisions you should choose to work closely with a real estate agent that can help you. If you are interested in looking in the Hot Springs Village area make sure to head to https://www.c21hsvrealty.com/agents-and-staff to find an agent that will assist you in your home buying or selling.