From Anabela Vargas, Vice-President/Senior Loan Officer at Canton Co-operative Bank Rising interest rates are getting a lot of attention. Media reports make it seem like it’s all bad news and getting worse. But it turns out that there are a few genuine silver linings and even some good news for homebuyers today.
For one, the bidding wars have cooled way down. All of a sudden at Canton Co-operative, we’re talking with buyers who are actually getting their offers accepted. Before that just was not happening for many people.
And homebuyers aren’t as willing to overpay now to get a specific property. As Canton Co-operative Loan Officer/Closing Coordinator Robert Dalo pointed out the other day, a homeowner can refinance if interest rates go down. But once a buyer has felt compelled to offer a significant amount above the listing price to get a home, there’s no getting that money back later.
Contingency protections are coming back for buyers too. We recently worked with a borrower who had walked away from a home because of a bad inspection. Contingencies are a real safety net for buyers. It’s good to see that buyers don’t feel like they have to waive all their contingency protections to get a house.
There’s even some good news locally for sellers. Because inventory remains somewhat low in the Metro Boston area, prices have held steadier than they have in other parts of the country where boom & bust is much more common.
These are unsettled times, and unsettling times. If you’re concerned about what the current interest rate environment means for you, email me, come see us or call 781-828-8811 x4.
Canton Co-operative Bank NMLS #721437
Anabela Vargas NMLS #582849 – Falo Português.