The Challenge of Selling a House Quick as Interest Rates Begin to Rise
What additional challenges do Dallas homeowners face in selling a home quick in a rising interest rate environment?
Interest rates are poised to spike quickly. How could that impact those already struggling to hold onto a home, or who need to sell a property quickly? What solutions are available to help?
We’re still waiting to see exactly how the Trump effect will impact the economy and Texas property market. Yet, all analysts and industry experts seem to agree that interest rates will quickly start to rise.
The Fed has even said several rate hikes are on their way this year. While official rates haven’t risen since December 2016, forecasts from NAR, Kiplinger, and Forbes project that 30-year fixed mortgage rates will hit at least 4.6 percent to 5.75 percent by the end of 2017.
For those already finding it difficult to juggle bills, it’s about to get tougher. Higher interest rates can impact everything from groceries to gas, to house payments. That will create more urgency to sell your home quick. It will also mean more competition from other sellers as more look to exit their homes, especially since refinancing may no longer be a viable option.
Buyers are feeling the pinch
On the other side, potential buyers are also feeling the pinch. Now their car payments, credit card bills, and other living expenses go up. In tandem with higher mortgage rates, that means they’ll qualify for less of a home than last year. The buyer pool is going to shrink fast.
Those that need financing to buy a home will also be wise to purchase cheaper homes in order to ensure they can hold onto them. The only thing that may alleviate this is if home loan lenders bring back subprime loan programs that low 55 percent to 60 percent debt-to-income ratios, and lower credit scores. But many experts don’t expect that to be a sustainable solution.
Ultimately, no matter whether you are selling your house quick without a realtor, want to sell your home online, or have consulted a home-staging professional on how to get your house ready to sell, it is going to be more challenging over the next four years. The sooner owners are able to sell a house quick, the more they are likely to get for their homes.
One saving grace may be the ability to sell your house for cash to an investor who isn’t being negatively impacted by changing interest rates. However, data does show that the number of cash buyers out there is shrinking as well, after years of buying activity.
The bottom line is that few can afford to wait to see how high rates go. Those that sell the earliest could get the most for their homes, and enjoy the fastest closing times.
How high do you think rates are headed? How might it affect you?
If you are wondering, “how can I sell my house quick before rising interest rates affect me?” contact DFW Sell Fast today. We offer cash for houses and buy homes in any condition.