Aren't You Afraid? - The Cost of Waiting In Fall of 2023

"I'm going to wait until..." has been a pretty standard statement we've heard as a team for the last 18 months. Much of what's driving the use of this phrase is speculation or fear. Speculation that the market is either going up in the case of early 2022 or bottoming out in the case of late 2022 or flat-lining in the case of 2023 as interest rates rise. 

Let's talk about the cost  of waiting as a would-be buyer. If you are a seller who is going to buy again or a buyer who has been sitting on the fence, what does this mean for you and your purchasing power? Let's look at the impact of a 1% interest rate hike alone:

You can see that a fluctuation in the one point between 7-8% at the same monthly payment can mean a loss of between $22,000 to $69,100 in spending ability depending on your purchase budget. 

So, what is the continued cost of waiting for you if interest rates increase?

How can you position yourself to take advantage of any potential short-term dips in interest rates that could be on the horizon in the next several months, as they did last November through January?

For context, interest rates peaked the week of Oct. 24th last year and then declined month to month before bottoming out in the first two weeks of January 2023 before they started to rise again every week through the end of March. As an FYI, interest rates peaked at 8% just last week and we'll be watching their trajectory closely.

Starting that first week of January, we saw multiple offers return immediately on our client's listings. Given this possibility, Spring may not be the BEST time to sell/buy as the BEST time to sell and buy will be when interest rates soften .  

In an up market or a down market. Your home or your business. We're here. If you need someone to call, know that you can consider us your go-to REALTOR® partners. We're here to support you as well. If you need anything from us and there is any way we can help, just call us at 214.310.1495.

Stay blessed!

In Mortgage News
What are mortgage rates today?
Residential 30-year Fixed Conventional: 7.88%
Residential 30-Year Fixed FHA: 7.32%
Commercial Property/Business: 10.00% - 10.75% (Prime of 8.5% + 1.5% - 2.25%)
I have great lender partners across property types. Just ask if you need any recommendations. 

Your friend and Broker-REALTOR®,

Megan Johnson