As rates increase, buyers will have less competition.
What’s happening with interest rates? You may have heard recently that the Federal Reserve has raised interest rates, but what does that mean for the real estate market? Today we’ll explain how rates impact the market and what this all means for you.
First, it’s important to remember that the Fed’s interest rate does not directly affect mortgage rates. In fact, mortgage rates have actually dropped in the last few weeks. No one knows where rates will head in the future, but for now, things are staying steady.
“You might be able to get a better deal on a home.”
If rates end up rising, it may create new opportunities for buyers. For example, there tends to be less competition when mortgage rates increase. This means you could get a better deal on a home, and you won’t find yourself in a bidding war.
Many builders have newly completed homes that are currently sitting empty because of higher rates. They are eager to fill these properties, so you could get an amazing deal on a new house if you find an eager builder. You won’t be able to customize the property since it will already be completed, but the incentives and price will be tough to beat.
If you are interested in these options or have any questions, please call or email us. We are always willing to help!