Low inventory and interest rates are why Realtors call Seattle one of the most competitive housing markets in the country.
“Good houses are disappearing instantly, you look at it one day online and say honey maybe we should look at this Sunday. By then, it’s already pending,” said Charles Harper, a home buyer.
According to the Northwest Listing Service, the median price of homes in Snohomish County is up 14 percent, and up 10 percent in both King and Pierce Counties.
Surging mortgage rates may have little effect on the housing market, at least in the near term, housing experts say. Mortgage rates rose sharply last week following comments from Federal Reserve Chairman Ben Bernanke that the Fed will begin tapering off its asset purchases later this year if incoming data continues to show the economy is on the mend.
Mortgage rates have risen sharply over the last month and Freddie Mac, in its monthly Economic and Housing Market Outlook for June, focuses on what happens to the housing market recovery if those increases continue. Recent movements have raised rates from the 3.5 percent range where they have been for most of 2013 to just over 4.0 percent.
While many market participants are concerned about the impact of higher rates on the economy and the chance that Fed tapering could take them higher, Freddie’s research suggests moderately higher rates are livable, even if they have some downside risks.
Mortgage rates and home prices are on the rise, and some home buyers who were waiting around for the housing market to reach bottom are realizing now they may have missed the boat.
Mortgage rates are inching up, with the 30-year fixed-rate mortgage averaging 3.91 percent last week — up from 3.3 percent in early May, according to mortgage giant Freddie Mac.
NAR Chief Economist Lawrence Yun says mortgage rates will continue to rise.
Read his latest blog post to learn how that could impact home sales.
Mortgage interest rates have come up off their bottoms and more increases are bound to come.
Those who didn’t take advantage of record-low rates have missed the boat – at least for now.
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If you or someone you know is considering buying real estate in the Seattle area, call or email me! I’m happy to meet with buyers and provide complimentary consultations for successfully purchasing real estate in this market.
– Jennifer Gilbert-Smith
Managing The Real Estate Details 