When the demand surpasses the supply, we’re looking at a seller’s market. In a seller’s market, you’ll see more buyers looking to buy a home than there are available on sale on the market. On a single home, you’ll see more than one buyer bidding on it.
Now, here’s the twist!
We have a seller’s market, but we also have low mortgage rates. This has led to people asking one question: “Should I Move?”
Well, should you move?
We’re surviving a brutal year. It’s the year of the pandemic. The pandemic has affected the mortgage rates of houses, decreasing them and creating a pool of buyers. If you buy right now, you can lock-in a low mortgage rate.
As of June, the mortgage rate on a 30-year fixed-rate mortgage is 3.13%, and on a 15-year mortgage, the rate is 2.59%. In Jan, the mortgage rate on a 30-year fixed-rate mortgage was 3.75%. As you can see, there’s a stark and significant difference in the mortgage rate from Jan and June. You’ll pay less in monthly payments if you buy a home right now.
Here’s an example: You bought a 30-year fixed-rate mortgage on a home for $300,000 at a mortgage rate of 3.72% and pay $1,384 each month. Your friend bought a home using the mortgage but with a mortgage rate of 3.12% and pays $1,284 each month, hence saving them $100 each month.
You want to be “the” friend, right?
You can be if you decide to buy a home right now. Since most sellers have pulled their home off the market during the pandemic, you go in expecting a lot of competition. You need to obtain a fixed-rate mortgage at a low mortgage rate instead of obtaining a variable rate.
Hasn’t the pandemic increased the selling price of homes?
Since there are fewer homes on sale on the market, the pandemic has increased the selling price of homes, but we have an unseen benefit. The pandemic has given us amazing low mortgage rates while maintaining price stability in the market.
Although you might be hesitant to purchase a home right now, you need to focus on the long-term benefit you’ll receive if you do— low mortgage rates! If you miss the 2015 or 2016 era where mortgage rates were low, we have incredible news for you. That era has returned.
Will you move?
We have shared information regarding the current state of the housing market. Now, it’s up to you to decide if you want to step outside to look for a new home or miss this great opportunity to purchase a home at one of the lowest mortgage rates in history.
If you don’t want to wait, let us take you house hunting in Alexandria, VA. We know you’re worried about the high price of homes, but we’ll find you your dream home within your budget. Let’s take a look at the property listings.