What do home sellers and homebuyers need to know in the current market?
Mortgage rates are currently on a downward trend and economic indicators suggest that trend could continue. The Federal Reserve is meeting on May 3rd and the market is expecting a .25% increase, which may be the last before we see a pivot. A pivot would mean the Federal Reserve does not do a rate increase. Keep in mind the Federal Reserve rate impacts the Prime rate index, which is tied to consumer credit cards, home equity lines, and business lines of credit. Each time that rate increases many consumers are negatively impacted.
The Fed’s rate does not have a direct impact on mortgage rates so while their rate is going up, we can see mortgage rates going down at the same time. As mortgage rates come back down, buyers can expect to have more competition. Sellers will gain some power back, but we are seeing that buyers are targeting homes that are more turnkey.
If you plan to sell, let’s make a game plan early in the process to bring your home to market is a condition that will be attractive to buyers. Bear Flag is ready help you buy, sell, with your home loan(s) and property management needs. We specialize in all things residential real estate and look forward to being a resource to you and helping you with your real estate needs. Talk soon – Martin
To view the April 2023 residential housing market update in magazine format, click here.
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