Rising Mortgage Rates in the LBI NJ Real Estate Market

High Tides Digital Marketing
Feb 28, 2023
3 min read

Rising Mortgage Rates in the Long Beach Island NJ Real Estate Market

Rising Mortgage Rates in the LBI NJ Real Estate Market

Long Beach Island Real Estate

Mortgage rates are an important component of the real estate industry and essential for anyone purchasing a home in the LBI real estate market. Even for those looking to buy with cash, mortgages still impact the overall investment in the Long Beach Island real estate market. Mortgage rates generally fell over the winter months but have recently started to rise. A beach house will become more expensive with a higher rate, so some home buyers in the LBI real estate market question if this is the right time to purchase or if it makes sense to wait for rates to (hopefully) fall again. While mortgage rates do not heavily impact the LBI real estate market in either direction, higher rates do equate to a higher ownership cost. Therefore, anyone looking to enter a Long Beach Island real estate transaction should understand them.

Rising Mortgage ratesRates in the LBI NJ Real Estate Market

Anyone looking to purchase a home in the LBI real estate market should discuss the specifics of the mortgage market with a qualified lender. Only then can a home buyer understand the market as it pertains to them. Mortgage rates have increased thanks to what is happening in the broader economy. Inflation numbers have risen, causing some to wonder if more rate hikes are needed in the future. While this is a rather simple explanation, it seems to be the principal cause of recent mortgage rate increases. The good news is, rates are still lower than there were at their recent highs, and they are in line with where LBI real estate mortgage rates traditionally have been. Traditionally, mortgage rates in the second home market on Long Beach Island have been right around where rates are today.

Home buyers in the LBI NJ real estate market may be worried about rising mortgage rates. However, now might be a good time to buy a home on Long Beach Island. Some buyers in the LBI real estate market may pause their search in fear of higher ownership costs. This means there may be less competition among buyers, giving anyone in the market an advantage. This is especially helpful given the low inventory levels we currently are

experiencing in the LBI real estate market.

Mortgage rates in the Long Beach Island NJ Real Estate Market

While it is understandable to be concerned about the prospect of higher mortgage rates in the LBI real estate market, it could be an even bigger mistake to miss out on a potential opportunity. Don't let rising mortgage rates discourage you from pursuing a home in the LBI real estate market. When fewer people are applying for mortgages and looking for homes, it means less competition for you as a buyer. This can translate into more negotiating power and potentially lower prices for your home on Long Beach Island. For more information about buying, selling or investing in the Long Beach Island real estate market please do not hesitate to contact me.