Hot Property: Why You Can Still Snag a Good Housing Deal, Despite Rising Interest Rates

The good news is home prices are leveling off as a way to compensate for the jump in mortgage interest rates.

PHOTO: SHUTTERSTOCK

While potential homebuyers around the country are running scared from the big jump in mortgage interest rates, buyers in this area can take comfort in the knowledge that home prices are leveling off as a way to compensate.

Freddie Mac’s chief economist Sam Khater reports in Fortune Magazine that home sales have been falling month-over-month since February and are now in the longest housing slump since October 2007 — the year of the subprime mortgage collapse.

Historically, Pittsburghers have a lot of common sense when it comes to the housing market; even during the subprime mortgage crisis, our market remained relatively steady as homeowners quietly rode out the wave.

That said, this is still not a good time to refinance your home — that ship has sailed. If you’re still looking to buy, however, you may be able to snag a good deal as anxious sellers lowered prices in the hopes of unloading their properties as they approached the end of the year.

Once interest rates fall again, you can always refinance your mortgage. Of course, if you have a lot of cash to leverage, the current real estate market may be your oyster.

Hot Property offers an inside look into unique and historic homes on the market. Each week, Hot Property goes behind the For Sale sign to share the story of a special Pittsburgh-area home. Four times a year, Hot Property gives an in-depth look at the region’s real estate market in Pittsburgh Magazine HOME, tracking housing prices and sales and detailing where the hot properties can be found. Rosa Colucci can be reached at onecordovaroad@gmail.com

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