Most of the time we think that interest rates are only crucial to buyers, but they’re also important to sellers. If you want to sell your home, and your interest rates rise 1% this year, buyers will be able to afford less. Therefore, sellers will see their values fall and attract fewer buyers.
As a buyer, if interest rates rise 1% you can afford 10% less. If you qualified for a mortgage of $300,000 in December, a 1% rise in rates would mean you can only qualify for a $270,000 loan. If you were looking for a $300,000 home and you couldn’t find exactly what you like, a $270,000 home will likely not appeal to you.
What we know is that interest rates will increase this year. So, if you have any interest in buying or selling you should get in the market soon. If you have any questions, don’t hesitate to reach out to me by phone or email! We look forward to helping you take the smoother road to sold.