What Buyers and Sellers Can Expect from Increased Interest Rates
Any increase in interest rates will affect how much a buyer is approved for. Here are some key points to keep in mind:
Buyers - Keep on top of your pre-approval to make sure your approval amount reflects current interest rates
Sellers - Increased interest rates may cause a shift in the market, with buyers being approved for less we can expect to stop seeing as much competition
Buyers - Stick to your budget, don't be tempted to overspend on a home right now
Sellers - In addition to less competition homes may stay on the market slightly longer than they did at the beginning of the year, this is why working with an agent to strategically price and help with marketing your home is important
Buyers - Remember, you can refinance once interest rates start to drop
Sellers - As buyers start receiving more modest approval amounts and the competition decreases we can expect to stop seeing offers 20 - 50K over asking
For help with pre-approvals, home buying and home selling please contact us.
