Sellers: Don’t Let These Two Things Hold You Back
Sellers: Don’t Let These Two Things Hold You Back August 1, 2023 For Buyers For Sellers Buying Myths Selling Myths Many homeowners thinking about selling have two key things holding them back. That’s feeling locked in by today’s higher mortgage rates and worrying they won’t be able to find something to buy while supply is so low. Let’s dive into each challenge and give you 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% . As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as the mortgage rate lock-in effect. The Advice: Waiting May Not Pay Off While experts project mortgage rat