Creative solutions to rising mortgage rates

Mortgage rates have now surged to 7% for 30 year loans. Real estate expert Lane Lyon has a look at how this is affecting home buyers in Colorado.

Continues to pile up for people wanting to buy a home in the metro area a mortgage rates have just gone up again now to seven percent for 30-year loans it’s the first time in 20 years we’ve seen rates like that and experts say more increases are likely down the road our real estate expert joins us live with a look at how this is affecting home buyers lane is a

Realtor and managing broker at caldwell banker thank you so much for coming in thanks for having me on i appreciate it corey so what’s the general feeling now with mortgage rates going up well we we definitely have some home buyers that are rethinking the whole process right now in fact in recent days in our office we’ve seen some home buyers back out of their

Real estate contracts because the estimates for their monthly payment wasn’t what they were expecting and so we’re encouraging home buyers to look for financing options out there to talk to their loan officers about what may be available query one approach may be to not be as focused on the price of the house or even the interest rate instead keep a close eye

On what you want your monthly payment to be and how to to get there is it offering less for the house is it asking the seller to help buy down that interest rate we are seeing situations where buyers are asking for ten thousand dollars in closing costs twenty thousand dollars in credits to buy down the interest rates and more and sellers are going for it how to

See also  EquiLend

Get creative right now absolutely so to me i mean the last couple years it has been a seller’s market clearly yes has it changed hands now well technically still a seller’s market conditions are still favorable for sellers and we base that on the amount of homes that are available take a look at this graphic right here you can see that we’re in the green right

Now that’s where we are today and it’s all based on absorption how long would it take to sell all the houses that are available on the market right now in denver and nationally we’re about the same one to two months of inventory so we need six months of inventory or more to be a buyer’s market that’s the blue and you can see those peaks right there in the blue

Market the blue area that was the 2010 market 2009 market we all know what was going on then these are very different times buyers are getting a little bit of like a little bit better a little bit of relief and then the interest rates but you have to just look for the opportunities right lastly let’s talk about new home builders how is all of this affecting them

Well new construction and home builders play an important role in all of the inventory situations because when inventory is low we tend to look at them and say can you build us some more houses please and quite frankly home builders had a hard time keeping up earlier in the year and these are companies that tend to be more conservative when it comes to risk so

See also  FASTEST Way to Make Money Online (,000 PER DAY FROM ANYWHERE!)

We have reports now of major home builders backing out of land deals they’re not wanting to build new communities right now because the market has shifted and corey there are economists out there that think this could play a role in keeping inventory low which means prices stabilize and go back up demand could go back up could we be in for what we saw this year

Next year oh dear we’ll keep an eye on we’re all over the board right now but the key is to look for those opportunities to win whether you’re buying or selling oh great advice very interesting and a lot of people are talking about the home market right now with all the rates it’s a hot topic for sure yes thank you thank you so much you got it

Transcribed from video
Creative solutions to rising mortgage rates By 9NEWS