Your Needs Matter More Than Today’s Mortgage Rates
If you're considering selling your home right now, it's probably because something in your life has changed. And, while mortgage rates are a crucial factor in deciding what you'll buy next, don't lose sight of why you want to make a shift in the first place.
It is true that mortgage rates have risen from recent record lows, which has an impact on affordability. With interest rates where they are, some homeowners are deciding to hold off on selling because they don't want to move and have to pay a higher mortgage rate on their next house. As Realtor.com's Chief Economist Danielle Hale explains:
“. . . homeowners who locked in a 30-year fixed rate in the 2-3% range don’t necessarily want to give that up in exchange for a rate in the 6-7% range.”
However, your way of life and changing demands should take precedence. Here are some of the most typical reasons why people sell nowadays. Any of these options may be more essential than maintaining your existing mortgage rate.
According to Ali Wolf, Chief Economist at Zonda, in a recent tweet:
“First-time and move-up buyers are both active . . . the latter driven by life changes. Divorce, marriage, new higher paid job, and existing home unsuitable all referenced.”
Changing employment, wanting to be closer to friends and loved ones, wishing to live in a dream location, or simply looking for a change of scenery are all factors that can motivate a move to a new place.
For example, if you reside in the suburbs and have recently landed your dream job in New York City, you may be considering selling your existing house and relocating to the city for employment.
Many homeowners decide to sell in order to relocate to a larger home. This is especially frequent when there is a need for more entertaining space, a home office or gym, or more bedrooms to accommodate a growing family.
For example, if you live in a condo and decide it's time to look for a larger home, or if your family is increasing, it may be time to look for a property that better meets your needs.
With inflation increasing daily expenses, homeowners may decide to sell in order to reduce maintenance and costs. Or they may sell since someone has lately moved out and there is now more space than needed. It's also possible that they've recently retired or are looking for a change.
For example, suppose you've recently begun your retirement and wish to relocate to a warmer climate with fewer responsibilities. Your new lifestyle may need to relocate to a different location.
Change in Relationship Status
Other popular reasons for selling and buying other properties include divorce, separation, or marriage.
For example, if you've recently divorced, it may be tough to continue living under the same roof. Selling and downsizing may be preferable.
If a homeowner has mobility limitations or health issues that necessitate specific living arrangements or adaptations, they may sell their existing property to find one that is more suitable.
For instance, you could want to sell your house and use the earnings to help pay for a unit in an assisted living facility.
With increasing mortgage rates, there are some affordability issues right now, but your requirements and lifestyle are also important. According to a recent Bankrate article:
“Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . .”
Connect with a real estate expert if you're ready to sell your home so you may relocate. That way, you'll have an expert on your side to assist you navigate the process and find a property that meets your needs.
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