Nervous Home Buyers, Don’t Worry: Rising Interest Rates Aren’t Scary Yet
Nervous home buyers, it’s time to take a deep breath and relax. Rising interest rates are causing some concern, but there is no need to worry just yet.
Interest rates have only gone up slightly so far, and there are still plenty of reasons why you shouldn’t be too alarmed. In this post, we’ll explore the reasons why home buyers shouldn’t worry about rising interest rates yet.
Mortgage Rates Are Still Historically Low
Mortgage rates are still lower than the US average over the last 20 years.
Despite fears that rising interest rates could lead to a downturn in the housing market, current mortgage rates are still very low and have not yet reached their peak.
In fact, many home sellers are now offering credit to buyers to help buy down their rates even more.
In fact, this has led to an increase in the number of home buyers who are able to afford their dream home and can secure a loan at an affordable rate.
At the same time, home prices have dropped significantly in recent months due to a decrease in demand for homes, meaning that home sellers are being more reasonable with their prices and buyers can get more for their money.
All of this adds up to one simple conclusion: if you’re a homebuyer and you’re worried about rising interest rates, there’s no need to panic just yet.
Rates are still very low by historical standards and you have plenty of time to lock in a low rate before they start to rise.
Higher Mortgage Rates Could Actually Be a Good Thing.
The good news is that while mortgage rates are increasing, they are still much lower than the average over the last 20 years. This means that if you take the time to research and shop around for the best rates, you could end up with a more affordable loan than you would have otherwise.
Also, Higher Mortgage Rates Can Actually Be Beneficial For Home Buyers.
1. Home sellers are sometimes more willing to negotiate when rates are high since they want to stay competitive in the market.
2. They may offer credit to buy down rates, or even drop their asking price.
3. It’s also possible that rising mortgage rates could be an indicator of slowing down in the housing market, which could lead to home prices dropping. This could work in your favor if you’re looking to buy a home soon.
4. You will get more home than you could in the last few years for the same monthly payment.
Over the last few years, many new home buyers were priced out of the market, meaning they couldn’t compete with the crazy home sale prices and the bidding wars.
Therefore, they had to wait yet another year or more to even think about being able to purchase. Paying yet another year of very expensive rent.
For most of the country, multiple offers are so… last year… and home sellers aren’t getting the record high selling numbers that they have grown to love.
This means that you can more likely buy your dream home than you were able to in the last few years for less money, and you even have a chance of getting the seller to pay down your interest rate a bit.
With some home sellers offering a credit to help buyers with their closing costs or to buy down the rate, this is a huge bonus for those who want to get into their dream home but don’t have the cash for the extra costs.
More great news is the home sellers are also being more reasonable when it comes to negotiations and are willing to work with buyers to make their purchase more affordable.
All of this adds up to good news for buyers: even if interest rates rise, you can still get more home than you could in the last few years for the same monthly payment. That’s because there are now more options and incentives available to help you manage the cost of your new home.
If you have any real estate questions (your question may be my next topic I write on), or need help buying or selling a home, contact me and I will personally help you or advise you to one of the many wonderful professionals in my network across the country. http://www.KarynMurphyKBR.com
I look forward to hearing from you, Karyn Murphy
P.S. >>> If you have any real estate questions, or need help buying or selling a home, contact me and I will personally help you or advise you to one of the many wonderful professionals in my network across the country.
Or, to advertise your property for FREE, go to http://www.RealEstateMall.US