TAG August Newsletter 2023 Huntsville Real Estate

The Golden Handcuffs

Do the Golden Handcuffs have you trapped in your current home? Redfin has reported that 62% of homeowners have a mortgage rate under 4%. If you are one of those lucky people with a historically low rate, you have probably asked, "Why would I move and end up with a rate close to 7%?"

For many who are considering a potential move, the exceptionally low mortgage rates obtained over the past couple of years created a negative impact on purchasing another home. So, what are your options?

1. Home prices continue to rise. Many buyers are purchasing now and will look to refinance later. Realtor.com economist Jiayi Xu noted, "We expect a gradual decline that could bring rates near 6% by year-end."

2. Builders across the area continue to offer rate buy-downs.

* Woodland Homes is offering mortgage rates of 4.9%

* New Castle Homes is offering $15,000 that can be used to buy your rate down.

* Stone Martin Builders is offering $20,000 to be used toward buying your rate down or for additional upgrades.

3. Wait to buy. Zillow stated that we have a nationwide shortage of homes to the tune of 4.3 million homes. If rates start to decline, we could see housing prices shoot up. Waiting could bring you a lower rate, but it could also bring you a higher price. A 3% increase in house prices could make the $400,000 home today $412,000 next year. Is waiting going to be worth it?

We realize there are many nuances to buying. Call or email us today for a comprehensive review of your housing needs.

-The Abercrombie Group

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