With the recent rise in mortgage rates beginning to level off, and Real Estate’s busy season fast approaching, conditions are ripe for Home Sellers to get off the fence.
Properties in first-time-buyer range are flying off the shelf, as are more expensive homes… priced right. If that weren’t enough good news for Home Sellers, more Buyers will be entering the market to take advantage of this lull in rising mortgage interest rates. I’m confident in saying, we are truly in the throes of a Sellers Market.
Having said that, this is not a challenge to see how much you can over price your listing. Appraisers, having been burned in the past, are judiciously cautious and many appraisals have come in below sales price. This is not to say they’re below market value, just below sales price.
Getting back to mortgage rates, the latest developments can only make this market hotter so jump right while the water’s fine. No one knows what will happen next.
— What’s My Home Worth? FREE Market Analysis of Your Arizona Home —
Home Sellers, Time to Get Off the Fence as Mortgage Rates Ease Off
By RISMedia Staff
After an April run-up, mortgage rates have slowed, with the average 30-year, fixed rate at 4.55 percent this week, down from 4.58 percent the prior week, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The average 15-year, fixed rate, however, was at 4.03 percent, up from 4.02 percent the prior week—but the average five-year, Treasury-indexed hybrid adjustable rate was 3.69 percent, a tumble from 3.74 percent the prior week.
“While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring,” says Sam Khater, chief economist at Freddie Mac. “The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity. It’s also good news that first-time buyers appear to be having more success so far this year, despite higher borrowing costs and home prices. Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
Source: Freddie Mac Reprinted with permission from RISMedia. ©2018. All rights reserved.
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Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management
Founder: AZVHV ⋅ MEMBER: Heroes Home Advantage
Voted East Valley Tribune’s: Best Gilbert Realtor
