What it means for buyers when interest rates are high or low.
Today, we’re going to discuss buying while interest rates are high and whether you should consider it.
When interest rates are high, many buyers become skeptical and may hold back from purchasing. However, it’s essential to consider what’s happening in the market. When rates rise, property prices tend to stabilize, and overall buyer demand decreases. This means that currently, you can buy with less competition and at a stabilized price.
As to what happens when interest rates go down, there are a few things that can occur. Some buyers may choose to wait until rates decrease before entering the market. As a result, when rates do come down, more buyers may try to purchase homes, leading to increased demand and potential price increases, just as we saw when rates were low in the past.
“The best time to buy is when you have a good enough reason to do so and can afford it.”
With that said, would you prefer to buy now with more choices and a stable price or wait for lower rates and face more competition? Additionally, if you buy today, could you refinance when rates drop?
Remember the saying: “When is the best time to plant a tree? 20 years ago. The second best time is today.” This applies to real estate as well. The best time to buy is when you have a good enough reason to do so and can afford it.
Trying to time the market perfectly is nearly impossible, as no one can predict the exact bottom or top. For more information about interest rates and the market, call or email us. We’re always happy to help.