How to Navigate Today’s Fluctuating Housing Market.
It's no secret that interest rates are higher today than they were in 2020, but what does that mean for traditional buyers and builders? Keep reading to learn more about how these fluctuations can impact your home buying process in 2022.
How have interest rates changed over the year?
Despite the current rise in interest rates in 2022, from a historical perspective, they’re still pretty low averaging out to 4.79%. “Projecting forward we do know that they will continue to rise,” says John Arcara, a local realtor and lending expert. A small rise in interest rates can make a huge impact on the dollars you spend. A rise of just .25% can have implications of thousands of dollars during the home buying process. For example, if someone is approved for a $300,000 purchase and the rate jumps .50%, they could only be approved for something under $250,000. With all of that being said, this shouldn’t necessarily scare consumers away from buying, or building. Investing in real estate has historically shown major financial benefits for the buyer. Since the pandemic, the national average home prices increased by 29%
Desirable places such as Lumberton, TX have seen an even higher demand just in the last year. Which makes investing in communities like Lumberton a no-brainer.
How can Buyers Make Smart Decisions?
Nearly across the entire United States, the market is considered to be a “buyers market”, meaning that buyers have a lot more leverage when it comes to buying. While interest rates are at a higher point than they were in 2020, we still recommend purchasing or building a home sooner rather than later. “Think of this market as "date the rate, marry the home," If you find the perfect home for you, but interest rates are not where you’d like them to be, you should still go for it as long as you’re not overextending your budget. We never want to get our clients into a situation where they are extending themselves too far, but it is important to remember that interest rates can be adjusted through programs such as refinancing ” Arcara says. Understanding the fluidity of how interest rates continuously fluctuate and how to navigate their change over time, can help a consumer make a smart financial decision.
To learn more about how you can make a smart financial decision in this ever-changing market speak with realtor and lending expert, John Arcara today by visiting his website: johnarcanarealtor.com
Date the Rate, Marry the Home - Two Immediate Building & Buying Home Recommendations
Interest rates have been a hot topic within the home buying and custom home building industry over the last few months; leaving some people to wonder if they should “wait things out” before purchasing or building a custom home.
John Arcana, a real estate and lending expert in the Beaumont, Texas area has two immediate recommendations for people asking themselves that question.
- ‘Date the rate, marry the home’
- Choose a builder you trust
“‘Date the rate, marry the home’ is a concept that helps people remember that they are only dating the market and the interest rates - rates are not something they are always locked into because of adjustment programs like refinancing” John explains.
Despite the recent rise in interest rates, from a historical perspective, the rates are still pretty low, averaging out to 4.79% nationwide. John encourages people to remember that the evening out of rates is overall good for our economy - and the market.
“Date the rate, marry the home is a smart financial consideration - understanding the fluidity of how interest rates continually fluctuate can help buyers or builders make a smart financial decision while not overextending themselves on budget.”
So, what about ‘marrying the home’?
“Meanwhile, the home you are buying or building is typically a longer term investment, and you should be ready for that ‘marriage level’ commitment - especially if you and your family will be living in the home, you should love it! For people building a custom home, it is especially important to work with a builder you know, like and trust. You want to understand what that custom build is going to hold up like in 3-5 years. You should work with a builder who has a lot of building history and local knowledge of the weather considerations, like hurricanes, under their belt. You don’t want to have to separate from the home early because of cut corners or low quality fixtures. You want to be confident when you marry the home. John continues.
So, if you find the perfect home, or it is a good time for your family to build your dream custom home, you shouldn’t let the current interest rates hold you back from saying ‘yes’.
To learn more about how you can make a smart real estate decision in this ever-changing market you can connect with realtor and lending expert John Arcara.
Phone - (409) 656-8267
Email - firstname.lastname@example.org
To learn more about custom building in the Beaumont, Texas or Crystal Beach, Texas areas you can connect with Prestige Custom Builders.
Phone - 409-313-3383