It’s true that mortgage rates are higher than they have been for many years. And, on November 2nd the Fed raised interest rates another ¾%. That means that mortgage rates are probably going to be even higher.
It’s true that housing sales have dropped off significantly since the interest rates have gone up. However, that does not mean that housing prices have to go down, particularly in this market. Let me tell you why.
There continues to be a dramatic housing shortage, and it doesn’t look like that’s going to change any time soon. Does it make sense to lower the price of something when the demand is high and there is a shortage of the item?
“There doesn’t appear to be any end in sight,” Nadia Evangelou, a senior economist and director of forecasting for the National Association of Realtors told USA TODAY.
Depending on who you ask, experts believe there is a nationwide housing shortage of between 2 million to nearly 6 million newly built homes.
Sure, mortgage rates are high, but you could refinance when mortgage rates go back down.
If you have to move, you have to move. If you are thinking about downsizing, you don’t want to miss out on the costs savings of living in a smaller house. Give us a call, and we can discuss your mortgage options.
Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater and Tampa Bay area, and serving all of Florida. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.