Your buying power might be higher than it was last year.

Are you still holding onto a mortgage pre-approval from a year or two ago, thinking your budget is set in stone? I recently sat down with my colleague Matt Stancato of Guild Mortgage to discuss what is actually happening with spring housing and interest rates. 


If you have been sitting on the sidelines waiting for the perfect house, the news is better than you might think.


The shift in mortgage rates. Mortgage rates have been trending downward for the last six to nine months. While they are in a bit of a flat period right now while the Fed gathers more data, the outlook for the next 12 to 18 months suggests they will continue to drop. This change in the rate environment means the math has changed for your monthly payment.

“Many buyers don’t realize their buying power may be stronger today than it was just a year ago.”

Why you need a "re-approval". Many buyers have been pre-approved for a long time but haven't found the right spot yet. Because rates are more positive now, you might actually be approved for more than you were before.


We recommend exploring our re-approval program. This is a free, soft credit pull that looks at your current financial situation. It helps you see if you can afford a higher price point or a better neighborhood than you could a year ago. It is a quick way to ensure you aren't shopping with outdated numbers.


Beat the spring rush. The spring market is officially here. We are seeing more inventory hit the market as the snow melts, and many homes are already going under agreement. However, there is a specific window of opportunity right now.


Currently, there is not quite as much competition as we expect to see in the late spring and early summer. Right now, buyers are actually getting their "wish list" items included in their offers. If you wait until the peak of summer, you may lose that leverage.


Whether you are buying, selling, or just curious about your mortgage options, now is the time to check your numbers. Don't let an old pre-approval limit your search when the market is becoming more buyer-friendly.


Contact us at (610) 549-4435, (610) 363-4300, or Homes@SteinRealtyGroup.com to see what you can truly afford in this spring market.