Four tips to help buyers be successful in today’s shifting marketplace.
The market typically slows down this time of year, but it has seen a significant shift, and there are now many disappointed buyers out there who feel like they’ve missed their opportunity. All of the sudden, interest rates jumped, and it shocked everybody. However, that doesn’t mean that buyers can’t find success in this market.
In the 1970s and 1980s, interest rates were in the double digits. Housing prices were less, but high interest rates still had a great impact on buyers. Here’s what I want today’s buyers to think about: You shouldn’t be waiting for interest rates to come down. The market cycle takes about 10 years, and I don’t think you want to wait 10 years to buy a home. Instead of waiting, here are some tips for how you can be successful in today’s market:
1. Take care of your credit. If you have some outstanding debts, start paying those off right away to get the best rates for yourself.
2. Buy your rate down. Talk with your agent about buying points to lower your rate.
3. Use a local bank. Don’t get caught up in some of the offerings out there. I have a great group of affiliated bankers that I work with. They’re all local and I would be happy to refer you to them.
4. Update your pre-approval letters. As interest rates have risen, your buying power has decreased. The 1:10 rule states that for every 1% rise in interest rates, your buying power goes down 10%. Be wary of this so you don’t end up trying to buy a home using your old pre-approval and not be successful.
Don’t sit on the fence and wait for interest rates to come down, because you may be waiting a very long time. If you have any questions, reach out to me by phone or email. I look forward to hearing from you.