Interest Rates are the hot topic lately and being a part of this conversation is important.
Let’s not forget that we are incredibly spoiled by the rate drops the Fed made during the pandemic in order to help stimulate our economy. I personally think that too many people are still haunted by the 2008 housing crash. Stats say that more than 40% of people are worried about another crash on the horizon.
Although these concerns are valid, I think there are too many indicators that point in the other direction.
The first is that our market is stronger than ever and lenders are not giving out subprime mortgages anymore. Lending standards have greatly increased since the last crash.
It’s also important to recognize that Nashville has a strong economy with an increase in commerce over the last several years, a large pool of good-paying jobs and moving people here regularly – all of which boost our housing market throughout the region.
Lastly, and this is something I tell all of my clients is that rates are slowly starting to normalize and most industry professionals are saying that we are going to level out between five and six percent by the end of Q1.
A five percent interest rate may be higher than what we have gotten used to in the last couple of years, but it is by no means a bad rate. If you get in now, you can start to build equity and refinance when rates drop.
This type of normalizing has to happen for us to stay healthy and this is the best time for buyers to get back out there. If you are someone who was beaten out the last couple of years in the frenzy, now might be your time. Sellers are sometimes forced to take lower sales prices, pay closing cost assistance and in some cases even help buy down interest rates in order to make the payment more comfortable.
April Harrington is the Principal Broker/ Owner at Exit Real Estate Experts and has a passion for real estate that is rooted in her pride in Nashville. April works closely with builders, contractors, inspectors, title agencies and lenders with a wealth of knowledge and expertise about buying and selling real estate in Nashville. She is the 2022 Nashville chapter president of the LGBTQ+ Real Estate Alliance.
