Many market watchers thought it wasn’t going to happen, but interest rates fell in the first half of 2019. For both home sellers and buyers, this should be outstanding news–but is it in practice? The fact is that the Real estate market doesn’t favor sellers quite as much as the changing interest rate led many to believe it would. Because home prices are still rising, among other things, and for many buyers, affordability remains a problem. So let’s see if we can figure out exactly how home sellers in Clearwater will be affected by the changing interest rate.
Changing Interest Rate Staying Low
While the good news is and will be offset by other factors about the changing interest rate for home sellers in Clearwater, the good part will remain good for some time. And that’s because mortgage interest rates are likely to stay low and maybe even drop a bit further.
Here’s what industry experts see: “After peaking at 5.09% in November 2018, the average APR for a 30-year fixed-rate mortgage dropped to 4.09% by June 2019, down a full percentage point . . . The forecasters now predict that the 30-year fixed will remain relatively steady through the end of the year, with no change exceeding a few tenths of a percentage point. The unexpected drop in fixed mortgage rates means that fewer individuals receive adjustable mortgages.”
Thus, this changing interest rate is good news for home sellers in potential buyers in Clearwater who are interested in fixed mortgages because they are now more affordable. But as far as adjustable mortgages are concerned, the new interest rate will probably not help buyers and sellers in turn.
Home Prices Still Going Up, But More Slowly
Home prices are still rising, as predicted, but at a slower pace than before. In 2019, the first four months. Buyers paid more for resold homes than a year earlier, but annual price increases were less than 4 percent each month. The year-over-year prices were higher than 4.5 percent for the same period in 2018.
While the changing interest rate has made mortgages more affordable, this advantage is offset by house prices still rising. And that leaves sellers Clearwater pretty much where they were before the rate changed.
Affordability Still Affecting Many Buyers
Yes, mortgage interest rates are falling and house price increases have slowed down, but many buyers are still having trouble buying homes, especially first-time buyers. The changing interest rate helps buyers for the first time, but at the same time they are hurt by rising prices. “What this means for the individual purchaser,” according to market watchers, “is that their monthly payments (despite lower interest rates) could be about the same as if you had purchased a year ago.”
Furthermore, the domestic housing market is extremely heavy, with plenty of high-end homes available, but fewer lower-end homes. So the lower interest rate hasn’t really helped affordability, and that leaves you, as a home seller of Clearwater, where you were before the interest rate was changing.
Lending Standards Easing a Little
For [ market city ] home sellers, the bright spot here is that lending standards are somewhat easier. While affordability may be a problem for some buyers, it is now easier for them to obtain a mortgage that works in your favor as a home seller, of course. With reduced documentation strictness, lower required credit scores, and lower down payments needed, you may find it easier to sell your home than previously.
Overconfidence to Be Avoided
Despite altering interest rates, slowing price rises, easing lending requirements, and inadequate fresh home construction, Clearwater home seller are still being cautious about becoming overconfident. For a complete third of home buyers, first-time buyers are generally able to afford and top-end housing, so “you’ll have to be competitively priced and give buyers incentives” – much the same as before.
What It Ultimately Means
So what does Clearwater really imply by the shifting interest rate for home sellers? While the interest rate has changed, it implies that there is not much else. The basics stay the same: work on stuff under your control like repairing, working on curb appeal, decluttering, staging, etc. Make your home the best it can be at a nice cost for a fast sale. And be sure to use a qualified local real estate agent – that hasn’t altered anything else. The evolving interest may get all the attention, but many variables are involved in selling a house. You might attempt to schedule your home sale to take advantage of the next forecast fall in interest rates, but that’s a difficult proposal as many other factors come into play – such as local market circumstances and the season.