A 20-Year High

No treats for us this Halloween, just the highest mortgage rate since 2002. Last week Freddie Mac reported a twenty year high for mortgage rates, clocking in at 7.08%. To compare, last week the rate for a 30-year mortgage was 6.94% while this time last year it was just 3.14%. 

With higher rates come fewer buyers. Though, this does mean that the buyers on the market are serious. After more than two gangbuster years in the real estate market, this rate rise is intended to bring things back to center. While this may feel like stagnation in the market (especially given that mortgage applications are at their lowest level in 25 years), it’s not all spooky. 

What Does This Really Mean?

We have to remind ourselves that in the 1980s mortgage rates reached over 18%. A mere 7% is a far cry from that high percentage, and doesn’t mean that your home won’t sell. Granted, it takes a few extra days compared to the average days-on-market at the height of the pandemic but we are still selling homes faster now than we did 3 years ago… even with current rates. 

If a buyer is on the market today it means they have concrete plans to buy and move. Use this to your advantage by marketing your home in the most desirable way: stage, price appropriately, and consider any fixes that might come from the inspection. A high interest rate doesn’t mean your home will never sell, it just means we have to work for the perfect deal. 

That’s not so tricky now, is it?