Here’s what rising interest rates mean for the real estate market.
Interest rates are currently climbing—they’ve reached the high fours and fives in some areas. Given that, many of our clients wonder what’s going to happen in the local marketplace. What impact will rising interest rates have?
As rates continue to climb, buyers’ purchasing power will decrease, meaning they’ll be able to afford less home. However, the houses that are currently available on the market are still receiving multiple offers, and many are selling for or above their asking prices, which is great news for sellers. Until buyer demand changes, that dynamic will likely continue, especially considering how many people are moving into the area.
Buyers, however, still have options: They can always buy down the interest rate they’re being offered. That comes with some upfront costs, but at least lenders can provide them with a path forward.
If you have any questions about what’s going on in the market and how it affects your real estate prospects, give me a call or send me an email. I’d love to help you.
