The Cost Of Waiting For Interest Rates To Go Down
Mortgage rates have continued to climb over the last few weeks and that directly affects buying power. Simple math will show you that as rates increase what buyers can afford decreases. So the question on everyone’s mind is, “When will they drop?”. The not-so-popular answer is, We don’t know but not anytime soon. The Federal Reserve has made it very clear they will not stop nor decrease rates until they feel they have combatted inflation. Additionally, the rates we saw around that 2.5% mark were unprecedented and will likely never be seen again. And for those who may opt into renting or continuing to rent, according the the National Association of Realtors (NAR) rents climbed at their highest pace in almost forty years.
So though it may seem like an unsettling time in the real estate market the truth is that closings happen every day and people are always moving whether it be for work, family, retirement, and so on. The real estate market is hardly ever a stagnant creature and to wait on rates to come down could mean you’re waiting for upwards of 4 to 5 years, maybe more.
FYI: The average interest rate in America in 1981 was 16.63%, and many had mortgage rates closer to 20%!
Orlando Real Estate Market
September 25, 2022 – October 01, 2022
Single-family existing homes
- Sales of single-family homes decreased to 293 during the week of Sep 25, from 509 the week prior
- The median price of single family homes increased to $405,000, a change of 1.3%
- Single-family inventory decreased by 157, and now sits at 5,014
Sales of condos, townhomes, and villas
- Sales of condos, townhomes, and villas decreased to 96 during the week of Sep 25, from 161 the week prior
- The median price of condos, townhomes, and villas increased to $256,000, a change of 1.8%
- Condo inventory decreased by 39, and now sits at 1,632