How to Help Buyers Feel Comfortable Purchasing a Home During an Uncertain Market

According to Fannie Mae research presented at the recent Lending Conference, housing sales have slowed amid affordability pressures.

One key factor is interest rates that have risen rapidly since early August, surpassing 6 percent, hitting highest levels since 2008. As a result, year-over-year demand for housing is down as rates continue to increase.

Despite these challenging trends, single family housing is still attractive to many buyers, and there are several ways you can work with potential buyers, paying attention to their specific needs and tailoring a solution to help them feel more confident in proceeding with a home purchase.

Highlight the advantages of home ownership

In many markets, rent payments can be very similar to house payments. But over time, owning a home can provide potential property value increases along with significant tax advantages. Suggest a consultation with a tax advisor to explore these benefits.

Take time to ask buyers what they can afford

Depending on their financial needs, you can create the right balance and flexibility in the amount of down payment they want to pay up front, closing costs and interest rates.

Discuss the variety of mortgages available

Suggesting an adjustable-rate mortgage could be the right solution for buyers looking for a lower interest rate in the short term and who are comfortable with a potential increase in interest rates that could match potential salary increases in the future.

Put current mortgage rates into context

While there has been a lot of attention focused on recent mortgage rate increases, from a historical perspective, rates are still historically low.

Remind buyers that nothing is permanent

Sometimes buyers need to be reminded that they are not locked into a particular interest rate forever. There’s always the opportunity to re-finance a loan if interest rates fall in the future.

No matter what the market holds during the rest of the year and into 2023, you can rely on Servion Mortgage to be here to meet your needs and exceed your expectations.