Based on the trends we’re seeing, interest rates are likely to rise. What does this
mean for you?
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In truth, we can’t really predict what interest rates will do. However, it is safe to assume that based on trends we’ve seen, they will most likely rise.
But what does this mean for you and your real estate transaction? Well, as a buyer this means that you won’t be able to afford as much as you could with lower interest rates.
To understand how much this will affect your buying power, a good rule of thumb to follow is this: For every full price point the interest rate goes up, it will cost you 10% more to buy a home. In the case of a 30-year loan, this kind of increase can result in tens of thousands of dollars.
Sellers are affected, as well. Rising interest rates put a natural downward pressure on home values, meaning your property will likely sell for less.
Ultimately, your money is your own. You should buy or sell when the time is right for you. However, do be mindful of how circumstances in the market will influence that transaction.
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The most important thing is to consider your circumstances, be smart, and work with a quality Realtor who will be able to guide you through the process.
Be mindful of how circumstances in the market will influence your transactions.
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If you have any other questions or would like more information, feel free to give me a call or send me an email.
