What Higher Rates Mean For Spring Homebuyers

By Chip Free

Chip Free is a seasoned real estate advisor with Lake Realty, a locally established firm in Lake Norman that his father founded over 30 years ago.

You’ve probably heard interest rates are high. And yes, they are—but that doesn’t mean it’s a bad time to buy. In fact, buyers may have more power right now than they realize. The spring market looks different this year, and if you understand what’s happening, you can still make a smart move.

Rates are high, but there’s more to the story. Today, interest rates are sitting around 6.8%. That’s higher than what we’ve seen in the past, but the futures market expects them to drop to about 6.3% by August. Keep in mind that these are general forecasts, not what people pay. Just recently, I had a client get a 5.59% rate on a 7/1 Adjustable-Rate Mortgage (ARM) from a local credit union, with no Private Mortgage Insurance (PMI) and only 10% down. Deals like this are out there.

The spring market got off to a slow start. The spring market started slower than usual. Typically, spring brings more activity, but high rates at the start of the year caused many buyers to hold off. This led to more homes sitting on the market longer, and more price reductions. Price cuts usually peak in the winter and fall as fresh inventory comes in during spring. But this year, price reductions stayed higher than normal into the spring season.

Inventory is up, and buyers have more choices. We’re also seeing more homes for sale than in previous years. That increase in inventory gives buyers more choices and reduces competition. Higher rates have cooled demand, which means sellers are often more willing to negotiate. As a result, many homes have had to drop their prices, and days on the market went up. That trend is starting to shift again as activity picks up.

Mooresville 28115 is a great place to find value. If you’re looking for a place with value, I suggest looking in Mooresville 28115. It has the highest percentage of price reductions, the most inventory, and longer days on market. One reason is that homes in that area are competing with builders who can offer rate buy-downs, forcing resale sellers to adjust their pricing.

Even with all this, the good homes still go fast. I’ve helped clients close on three homes this month that sold within two days of hitting the market. So, if something looks right, it’s important to act quickly.

If you’re thinking about buying this spring and want to make a smart move, I’m here to help. Call or text me at 704-806-2410 or email chip@lakerealty.com. Let’s talk about your options and find the right home for you.