August saw a continuation of the upward trend in the Real Estate Housing Market. As the summer draws to a close, there will be some adjustments and some competition for homebuyers over 55.

August was a hot month for the real estate market because mortgage rates hit their highest points in more than 20 years. Freddie Mac estimates that the interest rate for 30-year mortgages will be roughly 7.09%, while the interest rate for 15-year loans will be roughly 6.46%.

Notably, during the past three weeks, these tendencies have been climbing significantly. Therefore, it doesn’t seem as though there will be a high before September arrives. Every trend suggests that these rates will gradually increase.

The most of the summer saw a Real Estate Housing Market, but this month’s trend has improved due to new building. All throughout the Southeast, a large number of contractors built new homes. This made it possible for a third of the sold homes to be new construction.

Townhomes are lagging behind single-family homes as more and more new developments follow this tendency. In 55+ communities, townhomes and condominiums are growing in popularity as the need for minimal maintenance real estate increases.

August is witnessing some of the greatest property values in the past ten years as the summer draws to an end. 10% of properties on the market are valued at $1 million or more, particularly in locations with high demand.

While not all homes are worth as much, nationally, home values have climbed by an average of 7-9%. Potential homeowners may have to make greater payments if rising mortgage rates are combined with rising home prices.

There has never been a better moment to increase your down payment to at least 20%, since all trends are heading upward. Increased down payments can help you avoid the increased risk of higher mortgage payments brought on by these new developments. Even if you utilize programs with lower percentages, you have to contribute as much as your budget will allow.

There is a growing demand for these homes even though they are becoming more expensive and the mortgage rates are rising. Accordingly, the bidding wars of 2020 and 2021 might happen again, particularly in neighborhoods that are well-liked by people over 55. These localities include the Outer Banks region of North Carolina, the South Carolina Grand Strand, and the Florida coastline.

Targeting 55+ homeowners, many new communities include a variety of recreational amenities to draw residents to the area. Aside from the standard pool and clubhouse, some of the newest features are sports courts, dog parks, and walking trails.

Obtaining the best rates when purchasing a home still requires having a strong or exceptional credit score. Lenders loosened their requirements for approved credit ratings. However, the 7% rate that is currently available to people with strong credit is likely to be much higher.

If the kind of house you want isn’t negotiable, then you’ll need to adjust your budget to account for growing mortgage rates and property costs. You might want to think about a smaller property or a different area if your budget is set in stone. These upward trends could potentially decline. However, that isn’t anticipated to change until later in the year.

Freddie Mac Forbearance

Help is available for Hawaii residents who are having trouble selling or refinancing their properties as a result of the recent wildfires. You can benefit from the Freddie Mac forbearance program in the interim as you heal and look to make repairs. Your lender can also offer a program to help you if you don’t have a mortgage with Freddie Mac.

HECM Purchase

By using a HECM purchase (home equity conversion mortgage), seniors who want to buy and sell a house simultaneously can accomplish it. The proceeds from the sale of your first property can help cover some of the costs of the Real Estate Housing Market you’re trying to buy during this procedure. For this procedure, you must be at least 62 years old.

Bridge Loans

The benefit of bridge loans is an additional choice available to homeowners over the age of 55. These are intended to assist with a subsequent sale in the event that you close on your new acquisition prior to finding a buyer for your previous residence. The purpose of this short-term financing option is to tide you over until the original house is completed. Take this help option into consideration if your debt-to-income ratio is modest.

Need More Resources?

It’s really not that hard to find all the top resources for homebuyers over 55, especially when you use 55puscommunityfl.com. Please contact us right now if you need assistance with the home-buying process or if you have any concerns regarding the materials provided.