Uncertainty about the war in Ukraine is causing financial shifts that could continue in the short-term.
The spring housing market, which is known for being the busiest season of the year for most in the real estate world, is almost here. However, the conflict in Ukraine is causing some major shifts in the financial world.
Mortgage rates, after rising steadily for months, dropped last week, sparking a miniature refinancing boom. Now they are once again back to a pre-Ukraine level.
The average on the 30-year fixed mortgage is now 4.28%, a full percentage point higher than it was one year ago.
This uncertainty isn’t good news for homebuyers who are already facing high prices and low inventory.
However, David Krieger, the president of Coldwell Banker Realty in Philadelphia and central Pennsylvania says he doesn’t think these sudden changes will ruin what should be a strong spring housing market.
“Our listing inventory has actually ticked up slightly over the last 30 days in the central Pennsylvania market,” said Krieger. “So that is something that we are certainly optimistic about.”
While inventory may be ticking up, so are prices.
“With limited supply and still very strong demand, we are still going to see an increase in prices throughout the region,” Krieger explained.
However, Kreiger said he believes right now is still a solid financial time to buy or sell, despite a changing global situation.
“A lot of people talk about interest rates and how that’s going to impact the number of buyers who are in the marketplace,” he said. “We are at still historically low interest rates…the buyers are still out there.”