June 2022 Market Update
Here is a quick market report for June 2022.
The 3 “I”s: Inventory, Inflation, & Interest Rates.
Mortgage rates have shot up due to the federal reserve’s decision to increase the federal funds rate by three quarters of a percent, higher than expected. We are currently seeing rates above 6%. This affects the affordability of these loans for the people who will be borrowing money to make their real estate purchases.
If you have been pre-approved in the past few weeks, you may want to reach back out to your loan officer to find out what you can afford today, or to discuss possible alternative loan options such as an Adjustable Rate Mortgage.
On a positive note, we are seeing more inventory come onto the market. Here is Ocean City, our inventory is now over a month supply. This is great news for buyers. Yes, you are facing higher interest rates, but, 6 months ago you may have had to offer 30-40k over asking, wave contingencies, etc., to get a chance at the home you wanted. You now will have less competition and more to choose from.
If you have any questions for us, please feel free to reach out!
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