With the increase in mortgage rates this year, many homeowners began to wonder if the value of their homes would fall. Here’s some good news. Historically, when mortgage rates rise by a percentage point or more, home values continue to appreciate. The latest data on home prices seems to confirm that trend.According to data from CoreLogic, home price appreciation has been re-accelerating since November.This is largely due to an ongoing imbalance in supply and demand. Specifically, housing supply is still low, and demand is high. As mortgage rates started to rise this year, many homebuyers rushed to make their purchases before those rates could climb higher. The increased competition drove home prices up even more. And experts say prices are forecast to continue appreciating, just at a more moderate pace moving forward.
What This Means for You
If you’re thinking about selling your house, you have a great opportunity to list your home and capitalize on today’s home price appreciation. As prices rise, so does the value of your home, which gives your equity a big boost.
When you sell, you can use that equity toward the purchase of your next home. And at today’s record level of appreciation, that equity may be enough to cover some (if not all) of your down payment.
History shows rising mortgage rates have not hurt home prices. Now is still a great time to sell your house thanks to ongoing price appreciation. Our team can make selling your home an easy process. When you’re ready to find out how much equity you have in your current home and what’s happening with home prices in your local area, connect with us!
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