THE INDEXKC- KC METRO MARKET UPDATE
Weekly KC Metro Market Update
Mortgage rates rise, affordability becomes a greater issue….The cost of groceries and discretionary spending is rising. Let’s get at how these issues interconnect with the housing market.
Kansas City Metro home buyers are enjoying the rise in inventory numbers. More homes to choose from gives consumers time to digest their options, review several homes that may be a good fit, and frankly, gives folks time to breathe during the purchase process. This is happening due to two factors. Many buyers have pulled back, waiting on rates to drop. Though this is a huge mistake, I understand the misinformation that had led to that outcome. On another note, many buyers are feeling the weight of inflation, as higher grocery costs have eaten into their new home purchase strength.
The best time to buy is when you feel you need to move. Waiting on rates to drop is the same as waiting for more competition that will accompany that rate drop.
Changes in the new FICO 10T+ program will likely benefit those buyers who believe they can’t afford a homes due to deficient credit scores. The Alternative Credit Score (ACS) will allow lenders to take into consideration payment history for cell phones, insurance, utlities, etc., and in turn will help those with insufficient credit qualify for a home purchase.
Sellers, we are still in the middle of record low inventory numbers, making this a great time to bring your home to market, ESPECIALLY in light of the ACS mentioned above. 65% of all sellers will need to make a purchase to move; use this fall season to strategically hunt for your your next home while inventories are higher and you have more options relative to your next home.
Overall, I would fear inflation (and the corresponding impact on your purchase power) more than I would fear higher mortgage rates and here’s why….Rates will climb still higher. Waiting for them to drop is not a short term process. If the time for you to move is now, make your purchase with the plan to refinance when convenient.
If you’ve got questions regarding the impact of the shift on your search or the value of your home, we’ve got answers! Click the button below and let’s get you the information you need to be successful!