The federal interest rates have been increased for quite some time in an attempt to fight inflation. Many citizens in South Carolina will find themselves shifting their expectations when buying or selling a home.
The South Carolina market is currently shifting quickly. Mortgage rates are at record highs by about 7% and sellers are reducing home prices, so their home can stay on the market longer. The housing market has already been standing on uneven footing since the pandemic, and you may be wondering - what is next?
As interest rates continue to increase, many buyers are being priced out of buying homes, meaning they are unable to afford it as it becomes more expensive. As interest rates increase, the buyer’s budget will decrease. These increased interest rates increase homeowners monthly payments and make it very difficult to properly budget for home buying. In the past few months, more homes have gone on the market, but they are not selling due to the buyers being unable to afford the increasing rates.
With all of this being said, do not fear! It is still a good time to purchase. The market is unpredictable, and the prices often fluctuate each year. Interest rates may continue to rise, and your budget may continue to decrease if you wait too long. The cost of rent is similar to a mortgage payment, so purchasing a home now and refinancing later when the rates are lower may be a great option in the long run. If you are ready to buy and are running into the interest rate hurdle, consider the following:
Look into a different area - The area you are looking at may be more costly that perhaps an area further from a city. Although you may have a longer commute, the house of your dreams may be only 20 minutes away from where you thought you wanted to be!
Talk to mortgage companies - Some mortgage companies may offer down payment assistance or help you find someone who can help.
Reevaluate your wants and needs - Evaluate what are necessities and what are wants. Some wants may be able to be compromised and added later with renovations, so you can consider other options when house hunting.
If you’re ready to invest in your future, contact David Locke today. We’d love to get you into the home of your dreams, fast!