In the spirit of partnership, I thought I’d share three talking points our team is currently seeing success with as we speak with buyers.
- Clients concerned about rising interest rates can buy now and refinance later if rates fall. Rates are at 5.875% today, so now may not be such a bad time to buy after all. Rates are predicted to fall to 5.0%
this summer and hopefully to the high 4’s by the end of this year. - ARMs can be a good option. Adjustable-rate mortgages (ARMs) are growing in popularity amid the current high interest rate environment, especially for JUMBO loans (loan amounts above $977,500). As I’m sure you know, this type of mortgage comes with many more restrictions and protections than its pre-2008 counterpart. That said, homebuyers will want to take careful note of loan caps to ensure eventual interest rate rises are doable if refinancing isn’t an option in the future.
- Housing prices appear to be cooling, but rent is still rising sharply. For buyers on the fence, a conversation about renting vs. buying may be enlightening. Clients learning towards buying can keep monthly maintenance costs low by purchasing a complete remodel or new construction.
I know the market is tough right now, but our team is here to help in any way we can. If you’d like to discuss the market further, have technical questions about mortgages, or come across a buyer who needs special attention with a mortgage or refinance, feel free to reach out.