Planning to Move? Secure A Low Mortgage Rate Before it's Too Late!Return to Blog
This year, mortgage rates have started slowly climbing above recent record-breaking lows. Many homeowners planning to move may feel like they’ve missed the chance to score a great rate on their next mortgage. In reality, there’s still time to secure a rate far below the historical norm. Here’s why: After creeping up for seven consecutive weeks, average mortgage rates have dropped more recently (See graph below).
With rates taking a slight dip over the past two weeks at the same time, the inventory of houses for sale is so low, homeowners today are sitting in the optimal seat to sell. What’s the advantage of selling your home now? — securing a low mortgage rate on your next home.
To take advantage of today’s real estate market. Experts are encouraging homeowners to act now before interest rates climb. Most experts are calling for home prices to continue appreciating over the next several years. The most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home appreciation to increase as follows: 2021: 6%, 2022: 4.5%, 2023: 4%, 2024: 3.6%, 2025: 3.5%.
Using their annual projections, the graph below shows the equity build-up a purchaser could earn, using a $350,000 home as an example; A homeowner could increase their net worth by over $80,000 in five years! That’s an average of $16,000 annually. That number should be in any equation determining the financial benefits of owning a home compared to renting.
If you have any questions or would like assistance in your property buying, selling, or management process, contact Darryl Glass today at (510) 500-7531. For your convenience, you may also schedule a call with Darryl at a future date here.