What is the latest news for homebuyers in Western Montana?
The latest statistics from our market just came out a week ago, and one important figure I want to mention is the average days on market. The average days on market has risen to 120. This means sellers are sitting on the market longer, and I’ve seen many price reductions happen throughout the MLS during this time. This has also caused inventory to increase.
Another thing to keep in mind is interest rates are also rising. The Federal Reserve just raised them, and they are scheduled to raise them twice more before the year is over. Although mortgage rates and interest rates do not necessarily run congruent to each other, the last time interest rates went up, so did mortgage rates.
"Get out there and buy a home before rates go up again."
Last year, it was predicted that interest rates would rise from 4.01% to 4.8%, and that is exactly what has happened. That means if you would have bought a $250,000 home last year at 4.01%, your mortgage payment would’ve been $1,194 per month. If you buy that same $250,000 home this year at a rate of 4.8%, your mortgage payment will be $1,381. That is a $186 difference each month.
If you wait until next year to buy after interest rates have gone up even further, you will likely have to pay an even higher mortgage payment. Do not wait around for rates to go down because where they are at now is the lowest they will be for a while.
The increase in inventory, the rash of price reductions, and the specter of rising interest rates make now the time to buy.
We would love to help you find the home of your dreams and structure the best deal possible for you and your family. If you are ready to get off the fence, give me a call or send me an email. If you have any other questions or real estate needs, please feel free to reach out to me as well. I look forward to hearing from you.