Whether you already own a home or are thinking of buying one, today’s fluctuating interest rates can have certain implications for you. To help you identify those, we tapped top pros for their best advice on navigating the current housing market.
Right now, the recent spike in interest rates means you may pay more in interest charges for your home over time, which can make home buying more expensive overall. At the same time, when rates go up, other market factors like home prices tend to start to shift so that these costs eventually become more affordable than they were.
Many of today’s market metrics, like home prices and time on market, indicate that this shift is beginning and that the market is starting to correct itself. For one thing, home prices are dropping nationally. (According to recent data from the National Association of Realtors, the median national home price is now $375,7000, which is down 0.9% compared with what it was a year ago.) Generally speaking, a lower sale price can help contribute to a lower loan amount, which may make payments more affordable despite higher mortgage rates. Here’s helpful advice for both owners and buyers.