As we navigate through the ever-evolving landscape of real estate, I wanted to explain something called the “lock in effect.”
The “lock-in effect” refers to a situation in which homeowners are reluctant to sell their homes amid rising mortgage rates because they have a low interest rate locked in. With interest rates growing at an aggressive rate, homeowners may feel “locked in” to remaining in their homes, since moving could significantly increase their housing costs. Essentially, they are “locked into” their existing mortgage to maintain the financial advantages of their low interest rate. This phenomenon is especially pronounced during periods of rising interest rates. I’m sure that many of you are in this position right now.
The “lock-in effect” is one of the primary reasons why housing inventory is low at the moment. The good news is that mortgage rates have been coming down since October, and mortgage rates are expected to continue dropping further as the year progresses. As a result, we anticipate more inventory hitting the market soon. This will be a welcome relief to homebuyers who currently have very little inventory to choose from.
If you have a moment, I’d love to catch up and discuss how these changes might impact your current mortgage or present new possibilities for you. I’m also available to answer any questions you may have or provide guidance on your homeownership journey. Please feel free to reply to this email or give me a call anytime at 206-550-1096. Your satisfaction and success in homeownership are always my top priorities.
I appreciate you entrusting my team and me with your mortgage needs in the past, and I look forward to assisting you in any way I can. Thank you, and have a great day!
