Key Takeaways:

• Mortgage rates are going up, but they’re actually not that high. 
• You’re still in control: you can get yourself a lower rate with these smart tips.
• Find opportunities in your local real estate market—contact us today!

Many would-be homebuyers are fearful of rising mortgage rates. It seems like the news is non-stop negative when it comes to talking about the housing market. But it’s worth putting those headlines into perspective. In 1981, mortgage rates hit an all-time high of 18.45%! On a 30-year fixed mortgage right now, you can expect to find rates around 5.9%—that’s 68% less than the highest mortgage rates homeowners have historically managed. Let’s take a look at today’s mortgage rates and see why this is still the time to buy. 

Why are mortgage rates increasing right now?

The COVID-19 pandemic had unexpected financial consequences across the entire world. One of those was a real estate boom in the United States, spurred by record-low mortgage rates. 

In December 2020, the 30-year fixed mortgage rate was an astonishing 2.68%. And guess what? These were the lowest mortgage rates in history. The whole year of 2020 saw the lowest annual average rate in history at 3.11%.

That historical high of 18.45%? That was caused by record inflation during the OPEC embargo. And, the Federal Reserve is working hard to curb inflation right now to avoid things like double-digit mortgage rates returning. 

So, while plenty of lucky homeowners were able to purchase new homes or refinance their existing ones at around a 3% mortgage rate in 2020, it was extremely unlikely that those rates would ever become the norm—because they have never been. It was only due to the COVID-19 pandemic that rates were temporarily at their lowest of all time. 

Can I still buy a home with 5% mortgage rates?

Of course you can still buy a home! Before COVID-19 ushered in a few years of unprecedented global economics, in January 2019 the average mortgage rate was around 4.5% and around two-thirds of Americans still owned and occupied their homes. 

Mortgage rates have seen spikes and dips and national and international events influence financial markets. But for more good news, let’s consider that the average mortgage rates have actually declined every decade since the 1970s, and the amount of homeowners has steadily increased as well. 

With rates around 5% right now and more economic uncertainty on the horizon, this is still a great time to buy a home. You can lock in a rate that’s actually on the lower end, and be able to refinance when the time comes that they fall below 5% again. Or, you’ll be in a perfect position to sell your home at that time and realize your equity gains. 

How you can secure a lower mortgage rate

There are still steps you can take to lower your rate, independent of the Federal Reserve. Even though the Federal Reserve is responsible for setting interest rates, mortgage rates are only influenced by the Federal Reserve, and there are more factors you can control. 

First and foremost, make sure you pay attention to improving your credit score. It’s always important to have a decent credit score when applying for loans, but even more so when you can save yourself money every month on your mortgage.

Next, pay down or off any debt and try to increase your income if you can. A higher annual income helps with mortgage rates, but may also give you some extra spending to pay down debt before applying for a home loan. 

And finally, shop around for different lenders, and consider different types of mortgages. There isn’t just one lender in town, and there are more options than the conventional 30-year fixed mortgage. A combination of the right lender and the right mortgage for your financial situation can make a big difference in your final monthly payment.

Let’s Buy Your Dream Home

There are still plenty of wonderful homes for sale in all types of price ranges in different neighborhoods. That’s why it’s important to contact your local real estate team. Don’t worry so much about the headline news—focus on what’s happening in your backyard, and what kind of home you can buy right now. Contact us today to get started!

Key Takeaways:

• Understanding why a property organizer is your secret weapon
• Learning how to use a property organizer
• Discovering how property organizers will benefit you

Why Use a Property Organizer

Have you ever been overwhelmed in the buying and selling process? With so many options out there and the market constantly changing, it can be challenging to stay organized during your search. Luckily, there’s a user-friendly tool that has your back, and it’s called the property organizer. The property organizer is an overlooked yet extremely beneficial tool that stimulates and simplifies your home search. It’s important for buyers to utilize the property search organizer, as it offers advantageous qualities for each. 

How Will the Property Organizer Help Me?

This handy tool provides an easy way for you to save your favorite listings and property search settings so that properties within your search settings are delivered directly to your inbox. Property organizer benefits include: 

• Allows you to see listings that match your criteria
• Speeds the process of home searching
• Lists properties as soon as they hit the market
• Allows you to save and organize your favorite listings
• Provides a wider range of listings for as many options possible

Property Organizer and Email Alerts

First, you need to know how to use the property organizer to your advantage. Create a search for the area, price point and any additional criteria that fits within your home search. Once you create your search, save that search to receive email notifications directly in your inbox.  Email alerts are widely beneficial, as they ensure that properties in your criteria aren’t missed. You can adjust your settings to expand the area, price range, and how often you receive alerts.

For Buyers 

As a buyer, using the property organizer feature is vital to your home search journey. You have an advantage by using the property organizer, even if you aren’t ready to buy. No matter what stage you’re at in the buying process, creating a saved search in your property organizer is essential as far as monitoring trends, seeing what type of properties are available in your price range, and being aware of what features are common in the area. Overall, the property organizer helps you to become more active and engaged, so your next dream home won’t be missed! 

For Sellers

The property organizer helps to facilitate the selling process, as it allows buyers to see what’s out there with no limitation. When you list with an agent who has a property organizer on their site, you can be assured that your property is marketed directly into buyers’ inboxes as soon as it hits the market.

So, how is this beneficial to a seller versus a buyer? Well, the property organizer may help your home sell faster by increasing the chances of your property being seen, and maximizing its reach. As a seller, you’ll be notified anytime a home is listed in your market, along with its price, size, and other specific features, which promotes awareness and strategy behind your listings. The property organizer is also advantageous to sellers in the sense that it allows them to monitor aspects such as market trends and pricing strategies. 

Ready To Use The Property Organizer?

If you’re not sure how to set up a property organizer don’t worry, our team is here to help you! If you are thinking about buying, just let us know your price point, area, and any details you would like us to include in your search. If you are selling, provide us with your address and you will be notified when properties sell in your area.