February 27, 2024

Its still a sellers market despite mortgage rates reaching a 23-year high

Title: Jessica Geren and Husband Make Cost-Saving Move Amid Rising Mortgage Rates and Home Prices

In a strategic move to adapt to the changing real estate landscape, Jessica Geren and her husband decided to trade in their 2.75% fixed mortgage rate for a 5.5% adjustable-rate mortgage (ARM) when they sold their Connecticut home to relocate to New York.

Opting for a 5/1 ARM loan, the couple secured a fixed interest rate for the first five years, which would then transition into an adjustable interest rate. With prices and interest rates on the rise, this move allowed them to navigate the market’s uncertainty more effectively.

Like many others, Geren and her husband decided to make the move due to the end of remote work options and the desire to find a more affordable living situation. The current lack of remote work alternatives left them with no choice but to move closer to New York City for the husband’s return to in-person work.

Entering the housing market as first-time buyers during these challenging times has been no easy feat. Mortgage rates have been steadily increasing, and in September, the 30-year fixed-rate mortgage reached its highest level since 2000, peaking at 7.3%. Additionally, home prices have soared, with the median sales price surpassing $400,000.

To stand out among other interested buyers, the couple even went as far as offering the sellers an additional month of rental income by allowing them to remain in the home. Such incentives have become more common as the limited housing inventory drives up prices and intensifies the competition among buyers.

Nevertheless, Geren and her husband were fortunate to have accumulated equity in their previous home, enabling them to sell it at a profit. However, many current homeowners are hesitant to give up their low mortgage rates, which has contributed to the limited supply of homes on the market.

Despite concerns, Geren believed that an adjustable-rate mortgage was the best option for their circumstances at the time. By making this choice, they took calculated risks to stay afloat amid rising mortgage rates and surging home prices. It remains to be seen if their decision will pay off in the long run, but for now, they have successfully adapted to the evolving real estate landscape.

Note: This article has been written for Shiv Telegram Media, with a minimum word count of 300-400 words.