The housing market across the U.S. is feeling the pinch of rising mortgage rates. In some markets, more than 50% of active listings are experiencing a price reduction. This could be indicative of sellers realizing that they must be responsive to the new mortgage rate environment in order to move their properties.
Buyers are also feeling the repercussions of higher mortgage rates, as home affordability becomes less accessible. When it comes time to purchase a home, buyers must hold their stability in the job market even more closely, and be prepared for a higher degree of difficulty in obtaining a loan. It is essential that buyers have appropriate pre-approvals lined up before writing an offer, as well as a grasp on what type of loan terms make sense in current market conditions.
Notable Points:
• More than 50% of active listings across many U.S. markets have experienced a price cut
• Increased mortgage interest rates make home affordability more challenging
• Buyers need to be mindful of pre-approvals and appropriate loan terms
• Sellers need to recognize the current mortgage rate environment to be responsive when it comes to setting a price
You can read this full article at: https://www.housingwire.com/articles/as-rising-mortgage-rates-push-buyers-to-the-brink-sellers-are-starting-to-cut-prices/(subscription required)
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