Will Interest Rates Effect Your Ability To Purchase?
Recently, people have been asking if mortgage interest rates will be going up. That’s a good question. And it’s good to be concerned about it if you’re considering buying a home in the near future. There’s no way to definitely answer this, let alone how much the rates will go up. Recently, we have seen the rates go up.
Deep down, the concern is of course whether the rates will continue to rise and will they go up a lot… enough to impact how much home you can afford, or to even be able to qualify for a loan at all.
One could even argue that they need to go up. But let’s not get into that debate…
So let’s get into what the core fears are when people are asking about this…
If rates go up more than what we are currently seeing, a buyer could:
Pay more for the same house they could have gotten for less per month if they had bought before the rates went up.
Not be able to afford the same homes on the market they could have afforded before rates went up.
Possibly not even qualify to buy a house at all, depending on their financial situation.
So, what is an agent to advise?
To say that, “You should buy now, or you will miss out due to interest rates rising…”, can lead to fear-based decision making. That isn’t something a good real estate agent makes a habit of doing with their clients. Or at least shouldn’t. Besides, the interest rates may not go up enough to affect you, if at all. So, the best way to look at it is this…
If the thought of interest rates going up concerns you…buy now. Or at least sooner than later. Not because of fear that rates may go up. But because you are dealing with a known quantity, as opposed to the unknown. And because the mere fact that you are concerned speaks volumes about what you want to do deep down inside.
This is all pretty general advice…
If this has been concerning you, give me a call, or just reply back. I’d be happy to hear more about your situation and needs, so that I can advise you more specifically.
One last note: If you’re thinking about buying sooner than later, it might make sense to lock in an interest rate now. If you have a mortgage advisor, consider discussing this with him or her. If you don’t, just ask me and I am glad to recommend a great mortgage lender.