By Carly Seward, The Seward Group of TTR Sotheby’s International Realty and Kaitlyn Linane, Main Street Home Loans
Alexandria, VA – At The Seward Group, we’ve noticed too many would-be buyers sitting on the sidelines, discouraged by interest rates. But we believe homeownership is still one of the best paths to building generational wealth. Because of that, this month we’re switching things up and passing the mic for our monthly column to someone who can help turn hesitation into action- one of our trusted lending partners, Kaitlyn Linane:
If you’ve been trying to perfectly time out the Alexandria, Virginia real estate market, this article is for you. I’m a local loan officer and Scotsman Guide Top Producer. I’ve successfully advised clients on mortgage strategy through (what feels like) every version of Northern Virginia’s real estate market. To help you decide when it’s time for you to get off the real estate sidelines, I’ve collaborated with the Seward Group and The Zebra.
Let’s cut straight to the chase – interest rates. The most common objection I receive from my clients is that rates are too high. Often, these clients carry mortgages with incredibly low interest rates from the Covid era of lending (2%-3%). Fortunately, these clients are also in homes flushed with equity due to Alexandria’s aggressive appreciation rate. The thing about equity is that it’s trapped inside the walls of your home until you sell it or take out a mortgage to access it. If you’re one of these people, you’re not wrong for wanting to hold on to your house. Here are the things I would urge you to consider.
Do you have other non-tax-deductible high-interest debts? These include student loans, credit cards, and auto loans. If so, let’s look at your total combined interest rate for all your debts and see where you’ll pay less interest – in keeping your current home or squashing other high-interest debts with your equity. Even if your mortgage payment went up considerably, if you no longer had a $900 car payment, $20K on credit cards, and $80K in student loans, you would likely be net positive in a better financial position.
Let’s talk about the lucky ones. You know who you are. Even if you carry no debt and have an incredibly low rate of interest, there are other factors that my most successful clients consider. The only thing you cannot change about your home is the price you pay for it. When rates improve and more homebuyers enter the market, the simple supply and demand formula won’t be in your favor. Refinancing to a lower rate is quick, easy, and (on our team) planned out for you in advance of rates improving.
Because I care, I’ll rip the band-aid off; We are not planning on seeing conventional mortgage rates lower than the mid-5 % range for a while. Fannie Mae, the Federal National Mortgage Association, is one of two government-sponsored enterprises that have significant influence over the conventional mortgage market. Their chief economist anticipates interest rates will end this year at 6.1% and 2026 at 5.8%. If you wait, you’re betting against historic appreciation and in favor of interest rates that Fannie Mae does not anticipate.
I’m confident that if you’re reading this you’ve got the right mindset. You’re the type of person that is focused on building equity and playing the long game. Even if you’re a first-time homebuyer, you’re closer to owning a home than you think. Think you’re stuck with today’s high rates? You’re not. Smart buyers are using discount points – a one-time fee you pay upfront to permanently lower your interest rate – or even having the seller cover them to lock in lower payments now. Message me. I’ll show you how to make that happen. When you’re ready to step off the sidelines, we’ll be here to guide you every step of the way. Contact me directly at [email protected] for more information.
Have a question about buying or selling in Alexandria?
We’d love to hear from you—and may even feature your question in a future column.
The Seward Group offers full-spectrum concierge real estate service at all price points. Email us at [email protected], visit our website at www.seward-group.com, or call us at (703) 298-0562
The Seward Group would be honored to help you, a family member, or friend with any of your real estate needs.
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