Mortgage Rates Jumped. What Should Tulsa Buyers and Sellers Do Now?

If you've been watching mortgage rates lately, this probably wasn't the direction you were hoping to see.

Freddie Mac reported that the average 30-year fixed mortgage rate rose from7.03% to 7.28%in just one week. That's the biggest one-week increase in four years and the highest average rate in nearly three years.Freddie Mac

So does that mean buyers should stop looking? Should sellers be worried?

Not necessarily. But it does mean strategy matters more.

For Buyers: Don't Let One Number Make the Decision for You

There's no question that higher rates affect affordability. When rates rise, the same house costs more per month if everything else stays equal.

But here's where buyers can make a mistake: waiting for the "perfect" mortgage rate while ignoring everything else happening in the market.

Tulsa isn't behaving exactly like every national headline you see.

Recent September data for Tulsa showed a median listing price of about$275,000, with homes spending a median56 days on the market. That means we're not in the frantic market where buyers automatically have to fight ten other offers for every house.Realtor

Depending on the property, buyers may have opportunities to negotiate price, closing costs, repairs or even seller concessions that can help offset some of the pain from higher borrowing costs.

And remember, a mortgage rate isn't necessarily permanent. If rates eventually improve and the numbers make sense, refinancing may become an option.

The purchase price, however, doesn't get refinanced.

For Sellers: Higher Rates Affect Your Buyer Too

This is where sellers need to pay attention.

When mortgage rates move higher, buyers don't suddenly stop wanting houses. But their budgets can change quickly.

A buyer who comfortably qualified for your home a few weeks ago may now be looking at a noticeably different monthly payment.

That makespricing correctly from the beginning even more important.

Tulsa homes are still selling, and local prices have held up reasonably well. But buyers have more time to think than they did during the frenzy a few years ago. They're comparing homes. They're looking closely at condition. And they're paying attention when something feels overpriced.

This is not the market to add $20,000 to the asking price "just to see what happens."

The market will usually tell you what it thinks. Unfortunately, sometimes it tells you by not scheduling a showing.

The Bigger Point: Don't Try to Time Everything Perfectly

Real estate decisions are personal.

Someone who plans to stay in a home for ten years is making a very different decision from someone who expects to move again in two.

A seller who needs to relocate this fall has a different situation from someone who might sell two years from now.

That's why we don't believe the answer is simply:

"Rates are up, so don't buy."

Or:

"Prices are holding, so list your house at whatever number you want."

Neither is much of a strategy.

The better question is:

Given today's market, your finances and what you're trying to accomplish, does moving make sense for you?

That's the conversation worth having.

AtEMPIRE REALTOR GROUP, we'd rather tell you what you need to hear to accomplish your goal than tell you what sounds good.

Your Home Should Be Your EMPIRE.