Wednesday, July 6, 2022 / by Brittany Aspenson
What opportunities are waiting for buyers in this market shift.
How are rising interest rates affecting buyers?
"Two Fridays ago, we had an inflation report which was the highest in four years. As a result, interest rates increased by about 1% over just four days. To give you an example, on a $300,000 loan, the principal interest payment at 4% would be $1,435. At 5%, it's $1,620. That's a difference of $185 a month, so even a 1% increase in interest rates has a big impact.
"There might be less competition in the market moving forward."
"Rising interest rates could keep home prices down to a level where we might not see many homes with multiple offers. It might be a chance for some to get a home that they weren't able to get before without multiple offers on a property. One good thing is that there might be less competition in the market moving forward."
How are buyers benefiting from the shifting market?
"This market gives buyers a chance to be able to own a home, start to pay their own mortgage, start to work their loan balance down, and get some equity. I think there's a good chance for homebuyers to purchase homes and take advantage of the market."
If you're renting right now, you're paying someone else's mortgage. Taking the time to talk to a lender like Matt would help to see what you qualify for. You can reach him by calling (763) 370-0418 or emailing firstname.lastname@example.org. Also, feel free to call us at (651) 998-2098 or email RealEstateTeam@SandyErickson.com for your personalized Home Buyer Consultation. It's a great time to buy a home!