How do Rising Mortgage Rates Affect Selling your Home?

If you're considering selling your house, you've undoubtedly heard a lot about the market and rising mortgage rates. You may be concerned with how this will affect you, especially since mortgage rates have increased by more than two percentage points this year.

Buyers are reacting in one of two ways today: they're either deciding to buy now before rates rise or waiting for them to fall.

You will find yourself in the same predicament if you intend to buy after selling. Let's look back to get a better picture of mortgage rates throughout the years.

Historical Mortgage Averages

How today's mortgage rates compare to historical statistics could be one aspect that influences your decision to sell and buy now. While current rates have been higher than the average 30-year fixed rate in recent years, they are still relatively low compared to where rates have been since 1971; this means there's still time to lock in a significantly lower rate than in previous decades.

Where are we headed?

Buyers who are acting now are driven by the fact that interest rates have been steadily rising this year, and they want to get ahead of any additional hikes.

Why? Rising rates affect your monthly mortgage payment on the home you're buying. In other words, waiting to buy a house will almost certainly cost you more money. According to experts, mortgage rates are expected to rise (though slowly) in the coming months.

To slow the economy, the Federal Reserve has suggested that it will continue to raise interest rates gradually, which has been demonstrated to affect mortgage rates.

What about home prices?

Austin's economy and job market are still one of the strongest in the world. When comparing local to national news, we see a contrast, which can be confusing. However, home values in Austin haven't come down this year, and it's very unlikely that they do. We do expect things to slow down some this year but then pick right back up in 2023.

Final Thoughts

Rising mortgage rates are encouraging many buyers to act immediately and buy before rates soar any higher. Selling sooner rather than later can help take advantage of the buyers looking to lock in a rate while saving yourself money on your next purchase. If you've been considering selling, we'd be pleased to dig deeper and determine the best course of action for you and your family.