Interest rates are rising. What does that mean for buyers and sellers?
Many would-be sellers have doubts about putting their homes on the market right now. They’re concerned that increasing interest rates will reduce buyer demand and make it harder for them to sell. Today we’ll shed some light on this topic and explain how interest rates affect homebuyers in the mortgage world.
Most people purchase homes because they’re building a family, changing jobs, etc. Their priorities and desires have changed, and they need a new house to accommodate all these factors. Once we get into a conversation with them, we discuss interest rates because it affects their payments, but it’s not a deal stopper or deal maker for them. We do everything we can to help them get the best deal with the current interest rates.
Interest rates shouldn’t affect your choice to buy or sell a home since your desires and priorities have to come first. Historically, recession and interest hikes are followed by a boom in real estate. The market crash in 2008 was an anomaly since the recession at that time was caused by the housing market.
Increasing interest rates don’t mean a housing recession is looming. They will actually help the market balance. If you buy a home now, you don’t have to be stuck with your interest rates forever. You can always refinance once interest rates go down in the future.
If you need more details about how interest rates affect your buying and selling plans, don’t hesitate to call or email us. We’re always happy to help!