Buying a Home in Today's Market
When rates begin to rise, it can often be a turn off while in the market to buy a new home. But, buying a home in a rate-rising market isn’t totally out of the question, so don’t give up your search just yet. Here’s a few things to consider if you’re thinking of buying a home right now.
Historically, as rates rise, the housing market slows a little. This is good news if you’re in the market to buy a home because it means there’s more homes to choose from. Up until recently, just finding a home available was difficult. More inventory means more choices and you’re less likely to settle for a huge price tag on a home that isn’t quite what you were hoping for.
Something else that happens with rising rates is prices begin to stabilize. In the current market, you’re more likely to be able to negotiate a price or make a reasonable offer rather than getting into a bidding war with several other potential buyers.
When rates are on the rise, looking at an adjustable rate mortgage (ARM) can work in your favor. Typically you’ll be offered a lower rate than a conventional loan, plus rates will adjust with the market and they could potentially go down at the end of your term. An adjustable rate mortgage with a lower rate is also a good idea if you’re not planning to stay in the home long-term.
Make Sure You’re Pre-Approved
It’s always a good idea to get pre-approved before you start looking for a home. That way when you find a home you love, you can make an offer right away. In this ever-changing housing market, if you were pre-approved recently, you may want to check to be sure you’re still pre-approved.
Our mortgage partners at Primary Partners Financial can help. PPF's mortgage loan officers know their way around home loans and offer unparalleled service and attention.
Primary Partners Financial:
- Has Mortgage Loan Officers do the shopping and comparing for you
- Offers multiple options to meet your needs
- Provides sound advice to ensure you receive a loan program that's right for you
- Keeps you informed–you’ll know every detail and step in the loan process with no surprises at the end
- Offers longer service hours, and cell phone numbers reserved for Arrowhead members
- Has online service to give you easy access
- Provides excellent service and competitive rates
We can’t wait to welcome you home!