Many homeowners considering selling their properties often find themselves facing two significant obstacles. These challenges include concerns about the impact of today’s higher mortgage rates and the fear of not being able to find a suitable property in a low-supply market. In this article, we’ll delve into each of these challenges and provide valuable advice on how to overcome them.
Challenge #1: The Reluctance to Take on a Higher Mortgage Rate
According to data from the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is currently less than 4%. However, today’s typical 30-year fixed mortgage rates for buyers are closer to 7%, leading many homeowners to hesitate when it comes to moving due to the higher borrowing costs associated with these rates. This situation is commonly referred to as the mortgage rate lock-in effect.
The Advice: Waiting May Not Be the Best Strategy
If the fear of not finding your next home is holding you back, it’s essential to explore all available avenues. Consider a wide range of housing options, including condos, townhouses, and newly built homes, to expand your choices. Additionally, if you have the flexibility to work remotely or in a hybrid model, you can explore previously unconsidered areas. By widening your search radius, you may discover more affordable housing opportunities.
In Conclusion
Rather than dwelling on the challenges, focus on what’s within your control. Connect and work with Linda Craft Team Realtors, seasoned professionals who possesses the expertise to navigate these challenges and locate the perfect home for you.