Rising Rates and Market Update

Whew! June was BUSY! Thanks to all of our clients and their referrals, the Wethman Group had EIGHT settlements in June across Northern Virginia and DC. We appreciate your business!

We actually noted a bit of a slow down in market activity in June, and we expect the market to slow down more now that July is here, both because summer is typically a tad slower, but also the well-publicized jump in interest rates. Lenders we work with think that we can expect rates to bounce around a bit over the next few months, but hover in the low 4% range—still historically low, though not the low 3% range we saw just a few months ago. Don’t let the rates keep you from looking though, buyers—a bit of cooling off is just what is needed to avoid the multiple-offer-waive-every-contingency-craziness of May and June. Buying still beats renting in most markets, including our own, where some sources calculate rates would need to top 10% to tip the scales nationally!

Fannie Mae thinks rising mortgage rates will not derail the recovery we’re seeing though certainly it will squeeze pricey markets like ours first, as noted by the Wall Street Journal and Forbes.

Inventory is still low, but we can help you find the home you want, with advice from our own Katie Wethman! She was quoted in Homefinder.com’s How to Get the Home You Want in a Low Inventory Market. It’s about speed, price, flexibility, and personal connections. The article mentions connections between buyer and seller, but I would add that personal connections between AGENTS matters a LOT—agents always want to work with an agent they’ve previously had good experiences with, so don’t underestimate the experience of your own team in an environment like this one.

Though buyers are still out in full force, they definitely have high expectations.  If you’re wondering how to get your house ready for market, contact us early—decluttering, staging, painting and yard work always take longer than you think, and we can help refer you to reliable contractors. Need some tips on improving curb appeal? Check out this article that Katie was interviewed for about catching buyers’ eyes at the curb.

Do you own a small business? We’re putting together a list of our clients who own their own businesses for networking and referrals—contact us to be listed in our small business directory!

We’re taking the summer off from our free first-time home buyer seminars, but we are happy to meet with people one-on-one over coffee to discuss the home search and how to get started. Just contact us !


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