Mike O’Neil, Berkshire Hathaway Home Service Fox & Roach Realtors
It’s now the end of the calendar year, and we all thought rates would settle down at least somewhat, but that has not happened! We’ve seen rates continue to increase, now well over 7%.
Many factors influence rates, not simply the Fed, as many people believe. A good economy, lessening inflation, and most importantly, a continuing lack of housing inventory certainly contribute. Even industry expects are skeptical about lower rates, and where they are heading.
Here are a couple of thoughts: Even with the new normal at 7%, find a house you can afford and buy it! It may not be your original idea, but with demand in Bucks County increasing, find what’s affordable and get in the game, and start gaining equity.
I firmly believe housing prices will continue to rise. If you wait for prices to drop and rates to drop, you will regret it! If you buy over 7% and rates do drop, it’s not that expensive to refinance.
Over time, real estate has always appreciated, with minor market adjustments, but long term there are no danger signs in our area.
With rates moving up, we are now again able to sell a certain type of adjustable loan, which I am very comfortable with. When people hear adjustable, they tend to panic. A one-year adjustable was the dangerous product sold for many years, it could adjust rapidly year to year. The product I refer to is a 5-year adjustable, which locks in a rate below today’s fixed rates for 5 years. Traditionally, they have been a very safe haven for savvy buyers. Chances are, rates now will not increase that much above where we are now.
Feel free to call or email, and I can explain it further, or discuss the real estate market and financing. Meanwhile if you are considering selling or buying, give me a call. Even if you know people in the business, I can certainly offer more experience, so shop around for experience and a realtor who is connected to the area
Feel free to call me at 215-962-8511 or email me at mike.oneil@foxroach.com.