Mortgage rates continue to be top of mind and a tricky challenge to navigate for even those with extensive experience in purchasing real estate or seasoned investors with multiple assets. So, it’s no surprise that many first-time buyers find themselves overwhelmed by the high rates as they attempt to search for their perfect abode or starter home. However, the first step to achieving success amid a market marked with obstacles is to understand exactly what is going on, how it directly affects you, and strategies you can employ to reach your real estate goals, regardless of rates.

If you follow financial news, you have seen that the 10-year yield recently jumped to 4.649%. The 30-year fixed rate is down from last week’s rate of over 8% to 7.83%. Bellevue and Seattle are currently considered seller’s markets with two and 2.5 months of inventory, respectively. However, each has an average of 36 days on the market, meaning buyers are entering a slower market, one that allows them to take their time searching for the right home than they would have in a hot, competitive market. Rates are high, but this has been our new norm for a while now, and buyers, sellers, and real estate advisors have adapted to the new conditions of the market.

For sellers, higher rates haven’t necessarily led to an overall drop in home prices, and buyers are still active in the market. In fact, home price cuts have been lower this year compared to last. One of the most significant issues in today’s real estate market is the sheer lack of inventory. Recent spikes in mortgage rates have created a so-called “golden handcuff” effect, with nearly 82% of homeowners feeling “locked in” by their existing low-rate mortgages, according to Realtor.com. With this dynamic market right now, mortgage rates and housing inventory are in flux.

Whether you’re considering waiting to make your move or ready to get started, you should weigh the costs. Consider the Mortgage Calculator, Affordability Calculator, and Refinance Calculator tools, courtesy of Movement Mortgage.

Many factors go into buying or selling property, and sometimes as much as we hope for the perfect timing, we simply must work with the market as it is and a little research can go a long way in successfully preparing for the task. This is where an experienced advisor comes in—with our expertise, market knowledge, and marketing strategies, we help our clients make the most out of any type of market. We invite you to connect with us to explore your options, discuss your goals, and chat about the best ways to approach your purchase or sale. We’d love for you to allow us to eliminate the stress and introduce the fun in your exciting new venture!

How to Reckon With High Mortgage Rates