Many homeowners started to worry that the value of their houses would decrease when mortgage rates began to climb this year. The good news is this.
Home prices often continue to climb when mortgage rates increase by one percentage point or more. Recent information on housing prices appears to support that pattern.
A constant supply and demand imbalance mainly causes this. In particular, there is a strong demand for housing and a limited supply. This year, as mortgage rates began to increase, many homebuyers hurried to close their deals before they could go up. Home prices climbed even more as a result of greater competition. Selma Hepp, CoreLogic’s deputy chief economist, explains:
Early in the spring, home price increases accelerated as eager purchasers attempted to avoid mortgage rate spikes.
In addition, analysts predict that prices will rise at a slower rate in the future. According to a recent Fortune article:
“The rapid increase in mortgage rates… doesn’t indicate that property values are poised to fall. In reality, every significant real estate company with a publicly available projection model continues to expect that home prices will increase this year.
If you’re considering selling your home, you should know that now is a fantastic time to advertise your property and benefit from the recent increase in home values. As prices rise, the value of your property also increases, significantly boosting your equity.
You can put the equity from your sale toward the cost of your new house. And with the record-high rate of appreciation, we’re now seeing, your equity may even be enough to cover the entirety of your down payment.
The past demonstrates that increasing mortgage rates have not decreased property values. An excellent opportunity to sell your home is still right now because of continued price growth. Contact a reputable real estate agent when you’re ready to learn how much equity you have in your present house and what’s happening with property prices in your neighborhood.