What is new in the real estate world today? We are all hearing about it: rising interest rates!

Do you know what rates are at right now? Or do you just hear that they are high now?

Interest rates today for a 30-year conventional loan are at about 7%. Back in January, 2022, rates were in the mid-3%’s. So, you can see that panic from many right now that there is no hope in purchasing a home. Not true!

An interest rate of between 5-6% means a stable market.  That is what we finally have here. After the 2+ years of the red-hot seller’s market we had from outrageously low interest rates, this should be great news to buyers. Why?

We are not only seeing sellers help buyers again with closing costs, but also with things like rate buy downs, repairs again, and even price. Welcome back to a normal real estate market! What I have learned in the past few years in real estate, is that when rates are super low, that is all a buyer gets. They get a low interest rate and nothing else; no help with many repairs, no help with any closing costs, and absolutely no budge on price. So, buy the house. Buy with a smoking deal and refinance when rates decide to lower again, because they always do.

Here is the thing as well, interest rates do not dictate whether people are going to sell or purchase real estate. Job change, growing families, downsizing, sick or overpriced rent, and so on, are why people decide to buy and sell a home. So, no crash, no real estate bubble, but what we have here is finally getting back on track to where we should be! Yay!