Could higher mortgage rates contribute to less inventory? Will this further fuel the remodel boom we are currently seeing locally in Lamorinda?

Here is some food for thought mixed in with stats from a recent National Association of Realtors article that used a Redfin analysis of Federal Housing Finance Agency (FHFA) data from the fourth quarter of 2021 - the most recent period for which data was available. 

• About half (51%) of U.S. homeowners (with mortgages) have a mortgage rate under 4%. This is already substantially below today’s interest rates which are in the 5% to 6% range. 

With rates now at their highest level in over a decade, many homeowners may decide to stay put because selling their home and buying another could mean giving up their ultra-low mortgage rate and increasing their monthly housing bill. 

In terms of supply and demand, if this theory proves true, we will continue to see supply problems which means our market and sales prices will hold steady.  

We also believe this will result in a thriving home remodeling industry as more people decide not to move and look to refresh and upgrade their homes instead.  

Does this sound like a lot to navigate? It doesn’t have to be. We have years of real estate experience and are here to guide you and ensure your success. 

Dana & Team