Are the Rising Interest Rates Going to Affect Our Market?

A lot of people have asked me about interest rates lately and what impact they will have on our market. We have seen quite a significant jump; just a few weeks ago interest rates were in the low 3s and now we are seeing mid to high 4s.

There are two schools of thought on rising interest rates. Some buyers are waiting to see if those rates come back down. Others, though, have an urgency to buy before rates and prices make affordability too high.

It is interesting, though, because the last reason you want to buy a home is because you have to.  You have to be ready and confident and like what you are buying. That is what some buyers think; they are willing to wait for the right home even if it means interest rates increase by half a point or so.

Remember, too, we are still experiencing historically low interest rates. I wouldn’t say the increase is affecting our market terribly.  If you look at the transactions the past few months, over 60% have been cash purchases.  So, it’s almost a nonissue.

Thank you for taking the time out of your busy schedule to watch my video today. If there is anything I can help you with from answering your questions to buying or selling your home, give me a call!