Over the past few years, we’ve seen a significant increase in mortgage rates. This sudden spike has led many homeowners, possibly including you, to hit the pause button on their moving plans. The fear of selling and then having to deal with a higher mortgage rate for the next home is a valid concern. But is this strategy still the right one for you?
In the current market scenario, we’re noticing a trend where homeowners are becoming increasingly comfortable with the existing mortgage rates and are considering the possibility of moving. Mark Zandi, Chief Economist at Moody’s Analytics, sheds some light on this:
“Homeowners are beginning to list their properties as life events and job changes are compelling them to sell. There is also a growing realization among homeowners that mortgage rates are unlikely to revert to the rates on their existing mortgage.”
A recent study from Bank of America provides insights into the factors that would motivate homeowners to sell, despite the current rates (refer to the visual below):
What Would Motivate You To Move?
Given these reasons, it’s worth pondering what would make a move worthwhile for you. Is it the allure of a dream job that isn’t local? Perhaps you’re in search of a neighborhood that offers more amenities and a stronger community vibe? Or maybe you’re seeking more space, a new adventure, or a house that could provide rental income.
Another important factor to consider is the prediction that mortgage rates are expected to decrease over the year. Once this happens, we can expect a surge of buyers re-entering the market. While waiting for rates to drop could be a strategy, it could also mean facing stiffer competition from other buyers.
So, is it worth moving now, despite the current rates? The answer is not straightforward and depends on various factors.
It’s crucial to consider the current mortgage rates, their predicted trajectory, and your personal reasons for wanting to make a move. Consulting with an expert could be beneficial in making this decision.
Many homeowners are adapting to the current rates and deciding to move. Let’s discuss what matters most to you and determine if it’s the right time for you to re-enter the market.
