It’s been a long time coming, but we’re finally seeing mortgage interest rates rise and this could be your last chance to borrow money at historically low mortgage interest rates.
With the Fed promising additional interest rate hikes this year, the impact on the mortgage market is likely to be increased costs for homebuyers.
Real Estate Market Analogy For Home Buyers
The fact that mortgage interest rates are on the rise means that homebuyers can expect to have higher monthly mortgage payments in the future (versus what they would pay if they purchased and borrowed funds today). But there is another factor working against buyers too.
The current supply of homes is at a 12+ year low, meaning much of the Tallahassee real estate market has become a “seller’s market” and home prices are going to rise much faster now than they have over the past (many) years.
The best way to understand the confluence of these two trends is with a simple analogy, and that is what the bus in the image above is portraying.
The bus (best case scenario for home buyers) is leaving the station.
The bus represents low mortgage interest rates that will NOT be seen again in the foreseeable future. The limited seating on the bus represents the limited inventory of homes for sale right now (and declining).
For homes below $300,000, we won’t see supply rise because builders cannot produce single family detached homes in Leon County below this price due to crazy high governmental fees and rising construction costs.
Homes For Sale Under $300K
Under 300K
Under 300K
If you have been waiting to buy a home in Tallahassee, you need to know that your chances of getting a deal of a lifetime are fading.
Seats are limited and the bus is leaving. Soon it will be going, going, GONE!
If you want to take advantage of the lowest mortgage interest rates that you will see in your lifetime, then drop me a note and we’ll be in touch immediately to get you on this bus!
