Crunching the Numbers: Making Sense of Rising Rates and Real Estate

By Mark Davis

As a resident of Fairhope for over 10 years, I love living on the Gulf Coast of Alabama. Baldwin and Mobile County have so much to offer to its residents. Living in Baldwin & Mobile Counties and being active in the local communities, I have extensive knowledge and insight into the local market conditions and trends. I am a strong communicator, skillful negotiator, and a detailed oriented agent. Bottom line, I love being a Realtor and I will always get the job done for you and keep your best interest in mind.

I’ve received many inquiries lately regarding the impact of rising interest rates on home prices. Today, I’ll shed some light on this topic.

Interest rates recently reached a ten-year high at 7%, following an extended period of being at 3%. If you currently have a 3% mortgage, the prospect of transitioning to a 7% mortgage is understandably unattractive. As a result, homeowners are less motivated to relocate unless they experience significant life changes such as job transitions or retirement.

This reduced mobility among homeowners is exerting pressure on housing inventory levels. With fewer people moving due to the less appealing interest rates, home prices are holding steady. This situation can benefit sellers, provided they can find buyers who can afford their homes.

Furthermore, know that in the mortgage market, there are strategies to explore, including options for buying down interest rates. If interest rates eventually decrease, there may be opportunities for refinancing.

If you have any further questions about interest rates or require real estate assistance, please don’t hesitate to call me at (251) 210-2913 or send an email.