Interest Rates Hovering Above 5% – Now is the Time to Sell Homes!

By: Collin Ellingson

I’m sure you have been watching the gradual mortgage interest rate climb to over 5% this week.  Most analysts in the financial arena do not forecast a return to lower rates in the near future.

While the phrase “Now is the time to buy” might have become cliché during the past 18 months, it is absolutely the case right now, considering the current market characteristics of low prices, excellent inventory, and low but increasing interest rates.

If agents have ready prospects who are delaying their decision with the hope that rates again fall below 5%, it is important to stress that a delay could potentially translate into higher interest rates and, therefore, higher monthly payments.  Even at 5%, rates are still at historically low levels.  If  customers are first time homebuyers utilizing FHA financing, and they qualify for the $8,000 tax credit, they can use all or a portion of the credit to buy down their interest rate, or toward their down payment (above 3.5%).

Lenders are ready to assist consumers in capitalizing upon these market changes to build urgency and help customers take advantage of the amazing values currently in the market.