Rising interest rates might not be as bad as you think for a few reasons.
What are these rising interest rates doing to the market? Should you get in the market now or wait? Those are great questions, so let’s go over how interest rates are affecting our market.
While interest rates have gone up and will continue climbing, they are still very low compared to historical averages. Instead of slowing our market, rising rates have spurred buyers to secure a home before they rise even more. We’re still seeing price appreciation and multiple offers.
These higher rates might not be as bad as you think, and there are three reasons why. First, your average homebuyers are couples in their 30s with dual incomes and more assets than ever before. Also, jumbo loan rates are lower than conventional rates, so luxury buyers are still a bit protected. Finally, the additional monthly payment from a 1% rate increase is nominal compared to how price increases have been affecting payments.
If you’re planning on buying or selling, you should call me, and we can have a strategy session over what these rate hikes mean for you. If you have any questions at all, just call or email me. I’d love to help.