With interest rates on the rise, markets across the country are beginning to cool off from what many viewed as a “Bidding War” in the home buying process across the country. The Federal Reserve is focused on taming inflation, & by doing so has raised interest rates to the highest they have been since the year 2000. As rates increase, so does the price to borrow money and the amount of home a consumer can afford from their mortgage lender.
We took a look at a few of the biggest markets across the country that are cooling in home price values across the country. For potential home buyers hoping to price themselves back into the market for the home they desire, look for the Fed to continue to raise rates as this year unfolds.
3 Markets With Cooling Home Prices
San Jose, California
Advice From Top Agents across the country remains the same — If you are looking to buy a home be strategic. As markets continue to cool down, begin doing due diligence on the best deals in your market that are lowering their asking price.
If rates continue to rise, look for home buyers to begin to win over the properties they are interested in purchasing with less principle & flexible rates in which can be refinanced down the road.
Want to learn more about interest rates & what is to come as the year unfolds? Read our recent article on combating a quantitative tightening Federal Reserve.