Will Interest Rate Increase Impact Spring Home Sales?

Will Interest Rate Increase Impact Spring Home Sales?

In mid-March, the Federal Reserve announced a .25% rate increase, the first of what is expected to be three small interest rate increases in 2017. According to NerdWallet, mortgage rates prior to the 2016 election were around 3.75%; after the election, rates began to inch upward in anticipation of rate increases by the Fed. For that reason, yesterday’s announcement did not cause an immediate jump in rates. Rates in North Carolina for a 30-year mortgage are currently around 4% (see current NC mortgage rates at Bankrate.com). Experts expect mortgage rates may be in the 4.6 to 4.8% range by the end of the year, though those estimates could be impacted by changes made by the current administration.

Spring in North Carolina typically sees a jump in home sales. The rate increase is not expected to have a big impact on the market, but may cause potential buyers to re-evaluate the amount of house they can afford. Rates are not expected to decrease in 2017, so anyone looking to buy, sell or refinance may wish to do so early in the year.

Seller’s Checklist

Here are some things to remember if you are considering selling your home this spring:

  • Look at your home with a “buyers eye.” The half-finished repair job that doesn’t bother you may detract buyers. If there are outstanding maintenance issues, take care of them before you put the house on the market.
  • Clean and declutter to make your house look larger and better.
  • Trim bushes, cut grass and spruce up your yard. A welcoming pot of flowers on the porch is always a good idea.
  • Make a plan with various timing options – what if your house sells faster than you expect? Will you need interim housing before you move into your new home?
  • Decide if you will try to sell the house on your own or hire a Realtor.
  • Choose a closing attorney to assist with the necessary research and handle the closing. (Learn what a real estate closing attorney does.)

Spring can be a great time to sell your home, and with almost certain mortgage rate increases this year, now may be the right time for you. Need a real estate attorney? Give us a call today at (336) 249-2101.

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