Fed Increases Exchange Rate! Home Buying Panic-No!
by Larry DeBerry
on Thursday, December 15th, 2022 at 4:19pm.
Banks & Mortgage companies may increase rates based on the Fed .50 increase. Recently that hasn't really affected mortgage rates much. They actually moved down over the last few weeks. We will wait and see where they go now. How does that affect a home buying decision. If I used my argument of one of my past blogs, I would say don't let these things keep you from purchasing a home. Why? First, 5 months ago you would have had to bring a lot of money to the closing table. Today that is not the case and so interest rates don't have the affect of what happened recently. In fact, I think it is better not to pull money out of a 401 or other savings accounts just because you had to out-bid a person for a home. I would rather spread my risk over a longer period of time if possible. The key is seeking sound advice before running out to purchase a home.
I see home prices leveling off and I see more available inventory. I also see offers on homes coming in below list price and offers being accepted on negotiated deals. All in the plus column for buyers. If I wanted to purchase a home would this be a good time to buy, absolutely. I would want to lock in current rates. Why? I don't know where interest rates will go in the future but I know I can renegotiate later if necessary. Now that is just me. We all have different ideas when it comes to purchasing a home but for me I think it is a good time to buy. Others may have a host of other things that make up their decision. If I wanted to find out what works the best, I would contact a local Realtor and discuss those things. They can be a great help in making decisions and they can put you in contact with some of their great lenders that they recommend frequently. The more you know the better.
The past market is gone, the new market has been developing over the past couple of months. The market in DFW is robust due to employment, availability of money and a more available inventory of homes to look at. I think 2023 is going to be another good year for real estate. Different? Yes. However it is still going to be a great market for those seeking a home.