Rising Interest Rates: Here’s the Deal
If you’ve been following the news, you know that the United States central banking system, better known as the Federal Reserve (or “Feds”), continues to raise interest rates as global inflation, pandemic-related labor shortages and international conflicts persist.
Source: CNET Money
What Rising Interest Rates Mean for Buyers
Although rates are going up, there’s still strong buyer demand for inventory in the Houston housing market. As mortgage interest rates change rapidly, many home buyers are consulting different lenders and shopping around for the best interest rates. This is a smart thing to do as rates fluctuate from day to day and a loan officer can give you the best advice on your options based on your credit history and overall finances. For buyers who continue to ask is now a good time to buy, my answer remains the same: it depends on your goals. If you plan to stay in your home for at least the next five years and gain equity by the time you sell, then my answer is still “Go for it!”
What Rising Interest Rates Mean for Sellers
While there’s been much concern about whether rising interest rates and inflation will lead to another housing market crash, it’s important to stay calm and hopeful. We are seeing a gradual balancing out of supply and demand and this is a good thing. This balancing act is what helps to prevent sudden real estate crashes when housing bubbles burst. So, net-net, higher interest rates help to calm down markets around the country and this is ultimately good for everyone.
Unfortunately, I can’t forecast when interest rates will go down. However, whether you’re a seller or a buyer, keep interest rates in perspective and remain focused on your goals and what’s most important to you. Consult a financial advisor about loans, refinancing options and other vital information that will keep you from overextending yourself financially as a buyer or seller. And last but not least, remember to be flexible as you ride the wave that is this current housing market.