Here’s why rising interest rates aren’t all bad for buyers.
Are you worried about rising interest rates? Many buyers are concerned that rising rates may price them out of the market, but there are actually some benefits to increasing rates.
“You might be able to win a home with an offer below list price. ”
We always say, “Marry the home; date the rate.” The truth is that interest rates always fluctuate. They may seem high now, but they could be much lower in the future. If that happens, you’ll be able to refinance your home and still take advantage of that great rate.
Now is a good time to buy a home since there is less competition. Since demand is lower, you probably won’t have to offer above the list price. In fact, you may even win a home with an offer below the list price. These savings will lower your down payment and may offset the costs of a higher rate.
You probably won’t have to waive any contingencies to make a winning offer either. If you were concerned about skipping your inspection, now you don’t have to.
This may all sound like bad news for sellers, but it isn’t too late to secure a great deal for your home. However, you’ll have to work with an experienced agent who knows how to navigate this shifting market. If you are interested in buying or selling, please call or email us. We are always willing to help!
