Is It Better to Wait for Better Mortgage Rates Before Selling a Punta Gorda Home?

Is It Better to Wait for Better Mortgage Rates Before Selling a Punta Gorda Home?If you are mulling over the idea of selling your Punta Gorda home, you might have wondered if you should wait until mortgage rates come down before you sell your home and then become a home buyer yourself. You are not alone in this line of thinking. In fact, several news articles trying to make sense of the low inventory numbers speculate that homeowners are choosing to stay put to avoid taking on a higher mortgage rate in their next home. 

There is nothing predictable about the housing market, but there are some trends that occur a majority of the time that help to make sound predictions for a home purchase. One of these is the relationship between mortgage rates and buyer demand. When buyer demand is low, mortgage rates tend to be higher. This is because a higher rate can lead buyers to hold off on a purchase. 

As rates start to come down buyer demand increases. This was witnessed in droves when mortgage rates hit the high 2% range in 2020.  Buyer demand became crazy as homes for sale always entered into bidding wars and saw double-digit numbers of contract offers. This leads buyers to do interesting things to try and win out over other buyers to have their purchase offer accepted on a home. 

As rates hover higher than what people believe is ideal there is a larger number of buyers and homeowners that have decided to hold off on their buying plans. This is especially true right now as rates came down ever so slightly and news stories keep sharing that lower rates are expected to be just right around the corner. 

Why You Might Not Want to Wait to Sell Your Punta Gorda Home

Though mortgage rates are never completely predictable as evidenced over the last year, mortgage rates are expected to continue to decrease as the year goes on. As mentioned above, when rates come down the buyer competition increases. Though home inventory is increasing, it is still not increasing in numbers to create a balanced market or a buyer's market. This means that buyers could face the struggle of competing for a home again. Waiting until rates come down may not work in your favor. 

And again there is no magic crystal ball to tell us exactly when mortgage rates will come down. So if you do wait until they decrease to what seems like an ideal and affordable rate, home prices could be increased. The same next Punta Gorda home you were imagining purchasing now may be more money when rates are lower, making the waiting not worth it. If you can afford to sell your home and use the proceeds from your sale on your next ideal Punta Gorda home, right now just might be the time to list and then purchase your dream home. Homeowners that had this strategy a year ago thinking that mortgage rates would come down to the predicted 5% range by the end of 2023 are still waiting for that ideal 5% mortgage rate and home prices have increased. 

While it is not the most sound strategy a financial expert will never tell you to do this. There is always the possibility of refinancing and securing a better mortgage rate in the future. A home buyer is able to refinance a new mortgage loan as long as they qualify just 6 months after they close on a mortgage. Some homeowners were able to benefit from this strategy in 2020. If you do consider a refinance it should always be after securing a mortgage you can comfortably pay in the first place. Never take on a loan you can't afford with the hope of adjusting to an affordable one later. Always consult a financial pro to help you navigate your best and safest options. 

So if you are thinking of selling your Punta Gorda home, I am here to help. Let's get your home sold in a shorter timeframe and for the best price possible. I can also help you to find your ideal Punta Gorda home. Contact me any time for any of your Punta Gorda real estate needs. 

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