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Want to Move? Don't Let These 2 Things Hold you Back.

Are you thinking about selling, but have two key things holding you back? You may be feeling locked in by today’s higher mortgage rates and worrying you won’t be able to find something to buy while supply is so low. Let’s take a closer look into each challenge and provide some helpful advice on how to overcome these obstacles.


Challenge #1: The Reluctance to Take on a Higher Mortgage Rate

According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):


But today, the typical 30-year fixed mortgage rate offered to buyers is closer to 7%. The result of this is that many homeowners are choosing to stay put instead of moving to another home with a higher borrowing cost. This situation is known as the mortgage rate lock-in effect.


The Advice: Waiting May Not Pay Off

While experts project mortgage rates will gradually fall this year as inflation cools, that doesn’t necessarily mean you should wait to sell. Mortgage rates are very hard to predict. And, right now home prices are once again rising. Moving now allows you to at least beat rising home prices when you buy your next home. And, if experts are right and rates fall, you can always refinance later if that happens. Ultimately, it's important to break down the move into a REAL Dollar Impact to see if the price(s) of getting the new living situation you want is something you're comfortable with over the time horizon you plan to own the next home.


Challenge #2: The Fear of Not Finding Something to Buy

When so many homeowners are reluctant to take on a higher rate, fewer homes are going to come onto the market. That’s going to keep inventory low. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:


Inventory will remain tight in the coming months and even for the next couple of years. Some homeowners are unwilling to trade up or trade down after locking in historically-low mortgage rates in recent years.”

Even though you know this limited housing supply helps your house stand out to eager buyers, it may also make you feel hesitant to sell because you don’t want to struggle to find something to purchase.


The Advice: Broaden Your Search and Explore Creative Solutions

If fear you won’t be able to find your next home is the primary thing holding you back, remember to consider all your options. Looking at all housing types including condos, townhouses, and even newly built homes can help give you more to choose from. Plus, you may be able to consider areas you hadn’t previously searched if you’re able to work fully remote or hybrid. Just looking further from your place of work could give you some more affordable options. There are also creative ways to find unlisted homes, and instant access to equity solutions that help you buy your next home first before selling your existing home.


The Mullin Message


If change is what you want, and fear or uncertainty is what's holding you back, message us today and we'll help you get clear on all the options you may not have yet considered and offer you customized and creative solutions to help you get what you really want. You can connect with Matt directly at 702-326-5714.




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