Increased interest rates are good for buyers

For Buyers intending to carry a mortgage on a purchase, at first glance increasing interest rates appear to negatively affect a Buyer’s purchasing power. But do they really mean you can’t get the home of your dreams?

Would you rather buy an overpriced home with a low interest rate? Or a more-appropriately priced home at a higher interest rate? Think of the money saved on a lower down payment, same percentage but on a lower purchase price. Maybe even allowing you to save the expense of mortgage insurance!

One of the hardest parts for Buyers in a Sellers’ market, is the heart break of losing dream home after dream home. And knowing every time you lose in competition, the next home will sell for even higher!

Increasing interest rates offer less competition, decreasing housing prices, often more inventory, and the ability for Buyers to have conditions! It’s no fun to spend money on a pre-offer inspection, to give yourself confidence in what you are buying, to then lose your dream home in competition.

Now we are seeing inspection conditions, sometimes condition of sale of Buyer’s home, and financing and appraisal conditions. Even if you can afford it, no one wants to feel that they are over paying for a home.

‍

Words of advice: Marry the house, date the rate.