Whether you’re buying or selling a home, higher interest rates slow things down
WEST HARTFORD, Conn. (WFSB) – When interest rates were lower, homes sold for much more. With higher rates, some sellers have gone down, but not as much as you might think.
“We are still seeing prices outpacing demand, we still have plenty of buyers looking,” said Dawn Gagliardi of Caldwell Banker Realty.
Just a few months ago, if you didn’t bid fast and high, those looking for a home were out of luck, but Dawn says inventory remains limited and demand is high.
When asked how interest rates have changed the market, Dawn explains “well, they were 2% to 2.5% a year or two ago, which really got buyers looking . Now we are at 4.5% – 5.5%, sometimes up to 6.5%, which really compels buyers to take a look. »
“Things have normalized, as we like to say now, to levels that people are used to, even if they don’t like it very much because they’ve been spoiled,” said Betty Feigenbaum of First World Mortgage. .
Mortgage brokers say rates are currently hovering around 5.5% and those rates appear to be here to stay.
There’s some really good news for first-time home buyers, a new state program awards up to $50,000 as long as you’ve lived in the state for 3 years and are living in your new home at less than ten years.
It doesn’t have to be the very first house. If you sold your home three years ago and are looking to buy again, you may qualify.
Where you look is important. In the West Hartford areas at one time sellers were asking up to 20% or more and now it’s around 5%.
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