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Yesterday we saw interest rates climb to highs we haven’t seen in quite some time. This is a sign of a recovering economy and good news to those who live off of savings and interest bearing accounts. So what does this mean to you as a seller or buyer in the Myrtle Beach real estate market?
As a seller it is a sign that home prices are increasing and there is more of a demand for inventory. Homes for sale in Myrtle Beach are not as abundant as they had once been. Myrtle Beach housing inventory is at an all time low and this gives sellers a bit of an upper hand as the market shifts in their favor. However, this also means that home prices need to remain competitive as existing homes are competing with the low price of new construction and with interest rates climbing, buyers will begin to adjust the amount that they are looking to spend.
As a buyer, it is extremely important to have a good lender and lock in your rate when it is low. Look at a few options before deciding which lender to go with. Compare the closing costs and other fees associated with your new loan and be sure that the payment is what you expect it to be including your taxes and insurance on top of your principal and interest. Rate increases are something we all expected, you can’t stay at the bottom forever. By adjusting the amount you are looking to spend, you will be able to offset the cost of rising interest rates and you can still buy down your rate to lower your payment, depending on your lender.
Does this mean that Myrtle Beach real estate may be unattainable to some as rates slowly rise? No! Rates are still historically low and the increase is not huge. For buyers on the fence though, it is time to make a decision. We are the beginning of the recovery and there is still time to get into a house at a great price!