Rising Interest Rates Create Rush To Close For Home Buyers
Home prices in the Seattle area continue to rise at unprecedented rates and, while buyers have had access to historically low mortgage interest rates, we are currently seeing a change in this trend as rising mortgage rates sweep the country.
Rising mortgage rates can ultimately add tens of thousands of dollars to the cost of a home, and according to the Seattle Times, some buyers are finding out that they can no longer afford the same house they were approved for just months earlier.
Another outcome of this trend is a rush of panicked buyers hurrying to close the deal on their dream homes before interest rates will rise even higher in the months to come. New figures released by the NWMLS indicate the number of homes sold in King Country were 30% higher in November compared to a year ago and it was the busiest time for home sales in the Puget Sound region in the past 11 years.
While the rates may be up, they're still considerably lower than they've been in recent decades. By comparison, the average rate was 6.20 percent in the previous decade, 8.12 percent in the 1990s, 12.7 percent in the 1980s and 8.86 percent in the 1970s.
To learn more about the increasing mortgage rates and how this is affecting the Seattle real estate market, please visit: The Seattle Times | ‘Panicking’ Seattle home buyers, spooked by rising interest rates, rush to buy