Mortgage Rates Jump to Over 6%! Is It Time To Panic?
Mortgage Rates Jump to Over 6%! Is It Time To Panic?
Mortgage Rates have increased to 6.33% for conventional loans for a national average as of September 16th, 2022 but historically that is not too bad. FHA, VA, and USDA mortgage rates are near 5.75% nationally. This is the highest mortgage rates have been since 2002. But it is not something to panic about.
The federal reserve is likely to take steps to increase the interbank offering rates by another .75 points at the next meeting. This will have an immediate impact on credit cards, HELOCs, and bank loans. These rates are built into the mortgage rates already but we still could see some higher mortgage rates before the inflation rate is tamed.
So should you as a home buyer be panicking now? Absolutely not.
This is an opportunity for home buyers. Over the course of last couple of years when you wanted to purchase a home you had to compete against multiple offers and oftentimes had to offer more than the list price. Due to the higher interest rates, the homebuyer demand has slowed a little bit. This lower demand enables buyers to be able to negotiate a bit more than they did last year. So instead of competing against 10 offers you may be the only one bidding on an available home.
I have seen many contracts come across my desk recently with seller-paid closing costs. This is an opportunity for you as a home buyer to buy a home now, have some of your closing costs covered, and in some cases, have the seller buy down your interest rate. This this gives you the ability to purchase a home now and not next year when it will cost you 5 to 10% more.
For those that think that there will be a market crash I fear you’re sadly mistaken. The Dallas Fort Worth area has a very robust business climate. With companies moving their headquarters here all the time. There are just not enough homes available for the people that want to buy them. We will see a slowing in home appreciation, but you still see appreciation.
Marry the Home, Date the Rate
Yes, the interest rates are a bit higher now but when you buy a home through the Richard Woodward mortgage team, I will monitor your loan and as soon as interest rates come back down, we will refinance you without any processing fees or underwriting fees and maybe even without an appraisal.
One of the advantages of working with the Richard Woodward mortgage team is that we are part of the nation’s largest mortgage broker, NEXA Mortgage. With over billions funded we can leverage our huge volume to secure the lowest interest rates for our clients. And because we are a very low overhead, we can pass those savings along to our clients. We shop over 180 of the country’s top lenders and deliver wholesale rates to you.
I just had a realtor call me because her buyer was panicking at the current interest rates.
The buyer felt like the rate a mortgage banker was quoting her was just out of the question and too high. So I talked to the client and prequalified her with hours. I was able to offer her a significantly lower interest rate and much lower fees. The client was esthetic, and we are actually closing a week early. I thought it was when the mortgage banker told her that the rate she was getting was just impossible and that her loan would fall apart because I didn’t know what I was doing. Scare tactics from a bloated lender.
So to sum it up I would say if you are in the market to buy a house you should do so right away. Lock in the lowest available interest rate with the Richard Woodward mortgage team and we will close you fast and help you to gain wealth with real estate. Mortgages Made Easy.
We Offered lots of different loan programs. Explore your options here.
Dallas Housing Demand
- Sales volume for single-family homes decreased 7.56% YoY from 9,932 to 9,181 transactions.
- Year-to-date sales reached a total of 46,437 closed listings.
- Dollar volume rose from $4.49 billion to $4.91 billion.
Are Home Prices Dropping in Dallas?
- The average sales price rose 20.01% YoY from $447,888 to $537,515.
- The average price per square foot subsequently rose from $176.92 to $221.02.
- The median price rose 22.62% YoY from $356,000 to $436,510.
- The median price per square foot also rose from $165.09 to $207.95.
- Close to Original List Price was 105.10%, up 1.62% YoY.
Housing Supply in Dallas
- New Listings increased by 25.63% YoY.
- Active Listings increased by 60.60% YoY.
- Months inventory for single-family homes rose from 1.1 to 1.8 months.
- Days to sell declined from 54 to 53.
