by Kelly Overgard, contributor, Prior Lake Neighbors Magazine - January Edition
Here in Prior Lake, we are better than the rest! We have an amazing opportunity to lead the charge for changing the housing and mortgage narrative. Let’s band together as a community, stop talking about the negative, and focus on the positives.
We can start by looking at the big picture - interest rates are currently lower than the average mortgage interest rate over the last 40 years. (I bought my first home at 14% and was thrilled when I refinanced down to 10 ½%.)
We’ve learned that history repeats itself. That means mortgage rates are cyclical and, according to historical data, will go back down again. In the meantime, there are numerous ways to strategize the purchase of your next home.
Here are a few reasons to keep moving depending on what stage of life you are in.
Real Estate Investors
With the hype of reality TV and sensationalism of the BRRR method (Buy, Rehab, Refinance, and Repeat), real estate investing is becoming more popular and there is easier access to loan products and rate options.
Here are the benefits to buying now.
· Investors shop for positive cash flow and future appreciation. That makes them less sensitive to rates.
· Higher interest rates tend to drive rents up which can lead to higher profits.
Step Up Buyers
In addition to buying your next (slightly larger and checking off more of the boxes) dream home, you create an opportunity for another family to live and contribute to the Prior Lake community we love so much. You are making a positive impact and are part of the solution in our community with these advantages.
· For the first time in years, buyers that have a home they need to sell (to buy another) can write offers contingent on the sale of their existing home.
· Increase in rates typically means less competition in higher price ranges.
· Repeat buyers understand the value of possibly refinancing in the future to lower rates and payments.
First Time Home Buyers
This is the biggest sector that wins with higher rates.
· We’ve seen a considerable slowdown in most markets for escalating prices.
· Homes are staying on the market longer with fewer bidding wars.
· Sellers are finally willing to contribute to buyers’ closing costs.
Investors and lenders at all levels within the mortgage industry are working to roll out innovative products to help. The housing and mortgage market are critical components to keep all our Prior Lake businesses thriving. If we don’t change the narrative to positive and keep our housing market moving forward, we will face greater challenges than the increase in interest rates. Next time you hear a negative conversation; ask questions, dig deeper, and try to turn it around. Let’s show our community what we do best – band together to be part of the solution!
Have any questions? Reach out to us. We are your home loan experts and are up to date with all the market industry information. kelly@kevnikmortgage.com
Positively Changing Your Home Finance Experience. 🏠
NMLS#1639268 | AZ BK# 0932828 | Licensed by the DFPI under the CRMLA | Equal Housing Opportunity
