How interest rates and foreclosures are affecting our housing market.

What’s going on right now? Gas prices are through the roof, everything costs more, and home prices are still rising. Interest rates are also up, and we haven’t seen something like this in a long time.

We’ve talked about rising interest rates and warned buyers that they should get in a home now instead of waiting for a market correction. We’re not even sure that we will see a correction. We still don’t have enough inventory, so the market might adjust slightly, but we don’t expect to see any significant changes.

“A wave of foreclosures isn’t materializing the way it did in 2008.”

A lot of people are asking us if it’s too late. No, it’s not too late at all. If you’re looking to sell, you might not get 40 offers over the weekend, but the market is still strong. Honestly, we’re still struggling to get first-time buyers into homes.

We’ve been paying a lot of attention to what’s going on with foreclosures, but it doesn’t look like they will affect our market. Our bank doesn’t expect this wave of foreclosures to materialize the way it did during the mortgage meltdown of 2008. 

We are short four million homes across America, so the demand is still there. Also, if you are behind on your payments, we’ve heard that the banks are trying to work it out. They’re adding that missing sum to the back of people’s mortgages and extending their loans to 40 years. That will keep a lot of potential foreclosures off the market.

If you know someone who’s behind on their payments or looking to buy a foreclosure, we’d love to have a conversation with them. We’re really passionate and knowledgeable about foreclosures. If you have any other real estate questions or needs, feel free to call or email us as well. We’d love to help.