Today’s Interest Rates Equal Shopping Frenzy
With warnings about mortgage interest rates going up, buyers are out every weekend looking for something to purchase and lock in their rates.
It seems that anyone who has a down payment ready is looking to scoop up any property they can afford with the record low interest rates in danger of going up soon. Despite the gradual rate predicted, every Sunday open houses are swamped with potential buyers. People want to grab a property and lock in their rate now before teh rate goes up. The only issue is that with everyone looking to buy, and a lot of people only being able to afford $750,000.00 or less. This is creating a Seller’s market in the low end properties with dozens or offers coming in at ask or above asking price! With bidding wars left and right in this range, it seems like the low interest rate is over shadowed by the heat of competition. Usually cash offers beat out the competition in bidding wars, but with the interest rate being so low, some people are offering way over asking to get their foot in the escrow door.
On the other side of things, the luxury market seems to have slowed. Listings over $2,000,000 seem to be sitting longer and longer days on market. Perhaps this is due to more avaliability on the market in this price point, or perhaps its because a lot of luxury buyers either pay all cash anyways or are not worried about the grandual increase of interest rates. If you can afford the high luxury market, you most likely can afford to find the home of your dreams rather than battling bidding wars with those worried about a quarter percentage increate in your mortgage rate.