Understanding the Recent Rate “Bump” If you’ve been watching the news lately, you know the world is in a volatile state. This global uncertainty has a direct line to your wallet—specifically through oil prices. When oil goes up, inflation fears follow. Because the bond market is sensitive to inflation, we’ve seen a recent “bump” in mortgage interest rates.
The Spring Market Paradox Typically, early spring is the busiest time of year in real estate, with bidding wars and rapidly rising prices. However, these recent headlines have caused a bit of a “hush” in the market. Many buyers have stepped back to the sidelines to wait and see what happens next.
The Opportunity in the “Sluggish” Market While it feels counterintuitive to look for a silver lining in an awful global situation, the reality is that this temporary hesitation from other buyers creates an opportunity for you. Right now, the market is a bit more sluggish than usual for this time of year.
Timing the Market vs. Seeing the Opportunity You can never perfectly time the market, but you can see a window of opportunity when it sits right in front of you. If and when global tensions settle and rates come back down, the floodgates will open. When that happens, housing prices will almost certainly jump as competition returns. By getting into the market now, you secure the home price today and can address the rate through refinancing down the road.
Want to see how the numbers look for your specific goals? Reach out today for a consultation.