Buyers facing higher interest rates are becoming more cautious as 30-year mortgage interest rates hit 4.686 percent, a seven-year high. Couple that with rising gas prices – at a four-year high – and some buyers could become spooked.
This year’s higher interest rates have not yet caused much of a ripple in our strong market. However, inflationary pressures and the prospect of interest rates approaching five percent could begin to hit the psyche of prospective buyers.
So, what do gas prices have to do with selling or buying a home? Inflation and the price of oil are often seen as being connected in a cause-and-effect relationship. Inflation typically follows oil prices whether they move up or down. As gas costs go up, buyers’ purchasing power goes down.
Now is the Time to Sell
Buying – sooner rather than later – will help buyers lock in a lower interest rate. Keep your eye on gas prices. If you start seeing price jumps, know that interest rates are probably going to increase as well.
Listing your home now may be an opportune time to cash in while buyers still have confidence in their purchasing power. Call me at 941-322-7133 if you are interested in selling your home. To receive a free comprehensive home report in just a few minutes, click here or visit myPGhomevalue.com.