Mortgage Interest Rates Soar to 4 year High
Spring is always an exciting time in Real Estate. Many Sellers have waited to list their homes until after the Holidays have passed and home Buyers eagerly await to see new listings flood the market as Spring approaches. However, this year the Spring housing market will face some challenges as a result of mortgage interest rates jumping to the highest rates in 4 years and low inventory of homes in the Savannah market.
The rise in mortgage rates is due to the jump in U.S. bond yields. Some lenders are at 4.5% on a 30-year mortgage, the highest rates since 2014. The Savannah market is currently a Seller’s market with a shortage of listings. Many homeowners that refinanced their homes at lower rates will be reluctant to sell now that rates are on the rise, adding to the inventory shortage. And for home buyers, even a small percentage increase in mortgage rates could knock them down to a lower price point as they will be unable to afford as much home for their money.
If you have been on the fence about listing your home and moving up or purchasing a first home, you may want to consider moving up your schedule. The higher mortgage rates and higher home prices due to low supply and high demand will make the Spring housing market a challenge. Our Team is ready to help, give us a call today at 912-272-3826.