How rising interest rates will affect our 2022 real estate market.
How will the increasing interest rates impact the market? In the last few months, there has been a tremendous increase in interest rates. However, we saw a similar jump in rates at the start of the pandemic. In that case, rates rose quickly, then dropped far lower than before the pandemic hit.
That might happen again, but we don’t know for sure. No matter what they do, the rates we have now are much lower than they were three or four years ago, so we shouldn’t panic about the increase.
There are a few takeaways to consider. As a buyer, you can’t get yesterday’s rates. If you’re buying a house with these relatively higher rates, you can always refinance later if they drop, and we have top lending partners to help you do that. Also, if rates continue to increase, buyers who can’t afford the higher rates will have to leave the market. However, any buyers who are left will face much less competition, which is good.
These trends are matters that we study all the time. If you’d like assistance deciding what to do next, whether you’re buying or selling, please call or email us. We would love to help.