Higher Mortgage Rates and Long Beach Island NJ Real Estate

How LBI Real Estate Homebuyers are Impacted with Higher Mortgage Rates

Long Beach Island Real Estate

The Long Beach Island NJ real estate market is currently experiencing a challenging time, with high-interest rates and low inventory levels. For many buyers, finding an affordable home that fits their budget is becoming increasingly difficult. While mortgage rates typically do not significantly impact the LBI real estate home sales market, higher mortgage rates make it harder for buyers to purchase the home of their dreams.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Higher Mortgage Rates and Long Beach Island NJ Real Estate

Despite the mortgage challenges on Long Beach Island and elsewhere, there are still ways for buyers to navigate the LBI real estate market and find a home that fits their needs and budget. One strategy is to work with a knowledgeable real estate agent to help buyers identify properties priced competitively and within their budget. Buyers may also consider alternative financing options, such as adjustable-rate mortgages or interest-only loans, both of which may offer lower interest rates and favorable terms. Adjustable rate loans typically offer a fixed interest period, say 5 or 7 years, after which the rate adjusts. The good news is that it is very likely that rates will probably drop over that time, so a buyer could always refinance when the time is right. Interest-only loans are another attractive option. Like an adjustable-rate mortgage, interest-only loans usually offer a much lower interest rate. The buyer can generally make principal payments voluntarily (following the same schedule as a fixed-rate product but with a much lower rate). Any buyer in the LBI real estate market should discuss the options available to him or her with a mortgage professional. The market may be better than it can first appear!

How LBI Real Estate Homebuyers are Impacted with Higher Mortgage Rates

Interestingly enough, when rates drop, we do not see a surge in buyer activity, and likewise, when rates are higher, we do not see a significant exodus from the market. That said, one of the primary ways that higher mortgage rates affect the LBI real estate market is by reducing buyers’ purchasing power. When mortgage rates rise, buyers can’t afford to borrow as much money for a mortgage, so they may have to settle for a smaller home or a less desirable location. This is especially true when Long Beach Island inventory levels are so low. A monthly mortgage payment is one of many expenses involved with owning a second home or investment property on Long Beach Island. Buyers have to consider the regular ownership costs like property taxes, and LBI real estate home buyers need to budget for added costs like flood insurance and beach home maintenance. For more information about Long Beach Island or about the LBI real estate market please do not hesitate to contact me.

By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market