Today, I'll talk
about what you need to know regarding rising interest rates.
While a one percent
raise might not seem like much, it can significantly affect both buyers and
sellers. For example, let's say you're looking to buy a $200,000 home while
rates are at 5%. If rates go up to 6%, you could only afford a $180,000 home. A
one percent rise in rates is equivalent to 10% of home value.
Basically, while
rates are low, more people can afford to buy your home. Low interest rates make
it easier for sellers to sell their homes, and buyers will get lower monthly
payments. I advise that you take advantage of these low rates now, as rates
will continue to rise for the next few years. They will eventually come back
down, but possibly not for a few years.
If you have any
questions, please give us a call or send us an email. We'd be happy to help
you!
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