Mortgage Rates To Increase For Second Home Loans
Mortgage rates have been trending on everyone’s watchlist lately. We know that inflation nationwide will drive an increase and even though rates climbed to a 24 month high this week, it’s important to keep in mind that even a home loan rate of 4% is still historically low and a great percentage over the lifetime of your loan. Big news however was released earlier this month from Fannie Mae and Freddie Mac that will dramatically impact those that are purchasing second homes.
Increasing Buying Power During Inventory Shortages
It’s no secret that we’ve been discussing low market inventory across much of the nation for over a year now. A problem that market analysts predict will take 18-24 months to truly replenish. For first-time homebuyers and primary residents, competition from cash buyers and investors has been fierce. Their ability to purchase has been impacted at such levels that Fannie Mae and Freddie Mac have taken steps to help those most affected by inventory shortages.
New Rates Ahead for Investment Home Buyers
In an effort to assist these buyers, the administration has decided to increase the fees and rates for secondary home purchases as of April 1st, 2022. The goal is to give primary home buyers and first home buyers a little more buying power by slowing down the investment market during this period of real estate inventory shortages at record levels.
Purchasing A Second Home?
If you are actively searching or even under contract already, you need to act fast! In order to close ahead of the new rates, you will need to enter into a contract on your new home purchase before the end of February.
Looking For A Primary Home?
Inventory won’t dramatically increase with this change in terms so it’s wise to keep your search active as you will still face competition among buyers and the playing field will be more even, especially as mortgage rates aren’t showing a dramatic increase. If you are a first-time homebuyer, make sure you are prepared with a pre-approval and working with a professional Realtor, whose experience can help you navigate this unprecedented real estate market.
Need Help Navigating The Everchanging Market?
Our team of real estate professionals is available to assist you in finding the right lot, neighborhood, or preowned property to buy or build your Myrtle Beach dream home. Experienced in all facets of Real Estate and Construction, we can help you in understanding how changes in the mortgage rates and market activity will affect you! Call us today or start your home buying search online!