In the wake of the election results, we saw an increase in interest rates. Our preferred lender is here today to let you know what else to expect in the coming months.
In the aftermath of the election, everyone has been asking us about mortgage interest rates. People want to know where they are at now, and where they might be headed in the future. So, we’ve brought our preferred lender, Michelle Piccinini to talk to us about the impact of the election on interest rates.
What happened in our market after the election was the reverse of what a lot of people expected. Whenever you go through an unstable market, a lot of the money is pushed back into bonds because they are more secure. Right now, the stock market is thriving.
However, with a thriving market, bonds are tanking and we have seen a substantial drop since the election. This has caused an increase in interest rates. Before the election, we saw rates around the 3.6% range. Now, they are more in the 4.25% range. When rates go up, there are fewer buyers for your property overall.
The second thing that’s impacting our industry is the longer timelines for appraisals. Appraisers have to be compliant, and there are a lot more hoops to jump through than there used to be. When we order an appraisal, we go through the appraisal management company. We don’t know who the appraiser will be. It’s also harder to become an appraiser, so there are fewer available. When you combine this with increased demand, you get a lengthened timeline.
Appraisals now take an average of three to four weeks to complete. Most contracts are only three to four weeks, so it can really mess up some timelines. A lot of sellers have to pay rush fees of up to $500 to get them done in a timely manner.
For buyers and sellers, this delay will extend your timeline from 30 days to 45 days. Keep in mind that you’ll need a little bit longer to close on your home if you’re paying with financing.
Appraisals can now take up to 45 days to complete.
