Here’s why interest rates are important to both buyers and sellers.
Why are interest rates significant, and how do they impact buyers and sellers?
Interest rates are very similar all over the U.S., but in Northern California, conforming loan limits vary depending on the county. I’m a real estate expert, and my expertise is in buying, selling, and winning bidding wars. I’m not a lender, so to learn more about loan limits, speak to your lender or mortgage broker.
You’ve likely heard the news that interest rates have been increasing. In the graph at 1:05 in the video above, you can see the path interest rates have taken over the last year. In the last two months, rates have risen, which is why we’re saying you should take advantage and get into the real estate market now. Rates are still low and useful for keeping monthly payments affordable. However, the growing rates also mean the refinancing boom is waning.
At 1:55 in the video, you can see a graph that shows how interest rates have changed in the past 10 years. It proves that despite the slight increase, rates are still low by comparison. As the frenzy of refinances slows a bit, buyers can more easily get fully underwritten by a lender, which makes buyers’ offers much more competitive. You may not need a loan contingency, which is attractive to sellers.
I’m a numbers nerd and love discussing these things. So please give me a call or send an email, and I’d be happy to answer any questions and steer you in the right direction. I hope to be your real estate resource.