Mortgage rates have been on the rise in recent months, but that hasn't stopped home buyers from entering the market. In fact, according to the National Association of Realtors, home sales in May 2023 were up 8.6% from the same month last year. So while mortgage rates are still creeping ever higher, home buyers are still entering the market. Here’s what you need to know about what’s going on in the industry right now.
There are a few reasons why home buyers are still active despite rising mortgage rates. First, the supply of homes for sale is still very limited. This means that buyers are still facing competition, even though there are fewer buyers overall. Second, many buyers are motivated by the fear of missing out. They know that mortgage rates are likely to continue to rise, so they're trying to lock in a low rate before it's too late.
Finally, some buyers are taking advantage of government programs that offer down payment assistance. These programs can help buyers make a larger down payment, which can lower their monthly mortgage payments. Of course, rising mortgage rates are a challenge for home buyers. You’ll need to make a larger down payment or qualify for a higher-rate mortgage. But for those who are determined to buy a home, the market is still active.
Here are some tips for home buyers in a rising rate environment:
Rising mortgage rates are a challenge for home buyers, but they're not insurmountable. You can still buy a home and achieve your dream of homeownership. Here are some other things to keep in mind when buying a home in a rising rate environment: