What’s the housing market outlook for spring?
BIRMINGHAM, Ala. (WBRC) - Real estate agents have been busier than ever the past couple of years due to low interest rates. But now that those rates are climbing, what’s the outlook for the spring?
Over the past few months, Aliece Dice with eXp reality has been busy to say the least. Even though mortgage rates are climbing, she says it’s still a strong market.
“The housing market is still very, very hot. It’s a great time for sellers because inventory is low still,” Dice said.
The average 30-year-fixed rate mortgage is currently 4.95%, according to Mortgage News Daily. It’s the second jump in a week. If rates continue to climb, then it could cool off a housing market that’s been on fire due to historically low interest rates. We’re talking interest rates in the two’s for a lot of people.
“It may slow things down just a little bit because of the interest rates but people still need houses. We’re coming up on that time of year where people are going to be selling. Spring and summer is a hot time to sell houses because kids are not in school. With all that time mind, its still going to be a good time to sell,” Dice said.
For buyers, Dice says it’s all still a good time to buy, just keep in mind that interest rates could continue to go up.
“Don’t purposefully delay and wait until interest rates go up even more. Do it now while interest rates are still at decent level,” Dice said.
Rising interest rates could make it tougher for first-time home buyers. According to Nerd Wallet, if the rates rise before you find a home, try shopping in a lower price range. That’s because higher interest rates weaken your buying power.
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