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How Interest Rates Are Shaping Buyers' and Sellers' Moves

Let's talk about what's going on in the real estate world in Southern Indiana, Louisville, and the Heart of Kentucky. It's a bit of a whirlwind out there, with lots of buyers vying for limited homes, and sellers trying to plan their own move. But there's another factor that's played a major role in how our industry has shifted, and that's interest rates for home loans.

Taking Stock of the Market:

First off, let's do a quick check-in on the market. It's been a wild ride lately. In our service areas, it's been all about low inventory with a softing in the demand sector based on price point. Thanks to new constuction, inventory levels are increasing. However, the need for resale homes to balance out our local market continues. Depending on location and price point, home sellers are still receiving multiple offers, which is great news if you're looking to sell.

Interest Rates: 

Now, let's talk about the interest rates. They're kind of a big deal, especially for first time home buyers who make up 30-35% of the buying pool each year. Right now, they're still hanging out at around 7% depending on the loan product and a few factors specific to a buyer. High rates mean higher monthly mortgage payments, making homeownership feel out reach for many.

But here's the thing: these rates aren't set in stone. They can change based on what's happening in the economy.

How Rates Affect Buyers:

For buyers, those interest rates can make a world of difference. When rates go up, some buyers are squeezed out of the market or forced to rethink their budget. On the flip side, if you lock in a mortgage now, you can always refinance when rates lower. Staying in contact with a local lender and your real estate agent is very impotant after you purchase a home. 

And Sellers Too:

Sellers, you're not off the hook either. As we have experienced, rising rates...

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