Well, it seems the rates are not “easing up” as we’ve all been hoping for. After the bad news of the inflation numbers, mortgage rates are reacting with increases. Now it’s uncertain when, and if, the FED will begin cutting rates this year. it is clear that any previous predictions are out of the window.
The US Bureau of Labor reported earlier this month that the Consumer Price Index increased nearly a half a percentage in March, and increased 3.5% in the last 12 months. This is really starting to hurt. If you are out there with a great rate, you’d better consider holding on to it if your circumstances allow. Not an ideal point of view for a real estate agent, but that’s the way truth goes. In NC the average appreciation has typically been 6% – 7% annually. Major events like the 2008 bubble and Covid-era sales had their effect, but the average has maintained. We are waiting to see what patterns emerge with an election year and an unstable economy.
3 years ago, the market was rolling and people became optimistic as we crawled out from under the lockdowns and “protective government mandates”. Now, as we all struggle with higher pricing of nearly everything, people are in need of homes., Low inventory and rates are excluding many from meeting that need. The only short-term answer for some will lie in intentional financial responsibility. For others it will mean finding an alternative to home ownership until they’re able to improve their cashflow.
Hopefully the market will rebound as the election approaches, so we may get some good news on the mortgage scene. People will still need homes and have purchased with rates much higher than we see now. The areas that are attractive places to live and work will continue to grow. This may help buyers push back on home prices, which in some cases is legitimate. But this is just my opinion…