What you Need to Know About Rising Interest Rates
It isn't new news that the real estate market has been crazy over the past few years. We experienced historic record low-interest rates that many homeowners were excited to take advantage of. This created an extremely high demand for houses and led to bidding wars and an extremely competitive market for home buyers.
Interest rates should have never been as low as they were.
In recent months, interest rates have begun to rise and the real estate market is slowly beginning to correct. So as a home buyer, you might think that now is the perfect time to buy a house...but what is most important is that you really understand your money, and what the right next step is for you.
Here is what you need to know about interest rates increasing and how it will affect you if you plan to purchase a home.
For home buyers, this means that they can afford less house for the same amount of money. This is because when you take out a mortgage, your monthly payment is based on the interest rate of your loan and the principal amount borrowed. When interest rates go up, so does your monthly payment. Home prices are beginning to decrease, homes are staying on the market longer, and more price reductions are happening, but it's important to understand that higher interest rates will affect your home buying power. I created this guide to help educate you to understand what's going on and all of the options you have.
If you want to know more about the current real estate market and purchasing a home, please reach out!