What should you do now that rates have gone up by over 2% last quarter?
In the last quarter alone, interest rates increased by more than 2%. What does that mean for everybody?
First, buyers have lost about 20% of their buying power. Every 1% rise in interest rates equates to approximately 10% less buying power. If you were pre-approved for $500,000 last quarter, you are now likely only approved for $400,000. Buyers need to lock in their rates as soon as possible. Even in the last 24 hours, a lot of rate fluctuation has happened. Don’t panic about higher rates; you can always refinance at a later date.
Sellers should get their properties on the market as soon as possible. Rising rates mean that fewer buyers can afford your home. Take advantage of who can afford it right now, and get your home out there before the pool of buyers shrinks further.
If you have any questions, feel free to reach out to us by phone or email. We look forward to hearing from you.