Interest rates are a very important topic to understand. They go up and down, and trying to time them can be impossible. We have had historically low interest rates for some time now, but as of this year they have begun to creep back up.
If you are wondering if rates affects the real estate industry, the answer to that question is a big yes! It causes panic to both buyers, sellers, agents and brokers. Interest rates going up means that buyer power is less. You can qualify for less home at 6% interest than you can at 4% interest. The total amount of payment will be higher for the same home too.
Interest rates are volatile and fluctuate frequently, but we have seen a steady increase in rates, from the beginning of the year we have gone up almost an entire point.
On the other hand, despite the interest rates rising, this season is the best time to purchase the best homes for the entire year because the market slows down because of the holidays. We don’t know what they will be next year, we were hearing predictions they may be at 6 or 7% by the end of 2019.
It's better to be prepared than be surprised when it comes to the expenses of buying a house. We want to help make sure that you are at your strongest position to get you into your home as soon as you’re ready.
So for your buying needs and interests, you may contact me, Gabrielle at 214-659-1890. Talk to you soon!