BOSTON — Virginia Hunt is putting her childhood home in Milton on the market.
“We were able to get it done in time before interest rates really start to rise,” she said.
Interest rates are up at 5.4% but it’s still a seller’s market.
“There’s no 80 to 100 people at an open house there’s only 30 now,” said Jonathan Libman a mortgage expert.
Libman, who works at Fairway Independent Mortgage Corporation says the hot real estate market is showing few signs of cooling.
‘You’re seeing some pricing adjustments out there,” said Libman.
And that’s because of the big jump in interest rates.
“Interest rates have gone up faster than they ever have,” said Jeff Pilon, also a mortgage expert who works at Radius Financial Group.
Pilon says those rising mortgage rates have priced out some buyers, so old ways of doing business are new again.
“Now we’re seeing people buy the rate down by paying one or two points,” said Pilon.
There’s also renewed interest in adjustable rates.
“So, rates are high maybe I do an adjustable rate the rate kind of comes down for 5, 7, 10 years and that’s a way I can get into a home,” said Libman.
And don’t expect rates to drop any time soon. They’re actually expected to go up even more.
“I don’t think interest rates are going down any time soon in this type of environment,” said Pilon.
Also, if you’ve been housing hunting but keep getting outbid keep in mind that higher rates mean higher costs. So, be sure to consult with a mortgage expert to make sure you can still afford your dream home.
“Anyone listening who was pre-approved in the last 6 months I think you’ve got to revisit your mortgage person to see what your comfort level is for those guard rails because that makes a big difference today,” said Libman.
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