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If you are thinking of buying or selling Lynden, WA real estate, you have probably been keeping an eye on the mortgage interest rates. As a seller, this can impact what kind of market we are in. If the interest rates continue to rise as predicted, the demand can slow down and the inventory can catch up which results in prices leveling out. Which means as a seller, you may not get as much for your home for sale in Lynden, WA as right now. As a buyer, this means your budget may be impacted. While home prices could level out, they are not expected to decrease. The competition may not be as intense, but you may not be able to spend as much on Lynden, WA real estate. With mortgage interest rates increasing yet again, this is something to really think about if you had Lynden, WA real estate goals this year.
However, the big take away from the increased mortgage rates is not to all of a sudden throw in the towel and continue renting. Not at all actually. Buying a home for sale in Lynden, WA is still a better investment. You are paying a mortgage regardless, so it may as well be your own. Also, interest rates are still historically low. They aren’t as low as the last couple years BUT they are still low.
Let’s talk a walk back into history. In the 1970s, mortgage interest rates were 8.86%. In the 1980s, they were 12.7% (yikes!). In the 1990s, you were looking at 8.12% and in the 2000s 6.9%. Even though Freddie Mac reports increases in the last several weeks and they (along with Fannie Mae, the National Association of Realtors and the Mortgage Banker Association) are calling for them to continue to rise over the next four quarters, you can still get a great rate. Just don’t do a disservice to yourself and wait. As a seller, you could get less money for your house if inventory catches up with demand. As a buyer, you could have less to spend on a home for sale in Lynden, WA.
If you are interested in buying or selling Lynden, WA real estate, give me a call at 360-410-0848.
