Rising Interest Rates Good?by Anthonie Sioco, 5/25/2022
Potential buyers are no longer being as aggressive as they wait for prices to fall even more over the coming months.
At first glance, rising interest rates and falling home prices can look scary.
However, there is a silver lining.
As prices fall & more bargain deals hit the market, you are better able to land a property at a much lower price than a few months ago.
You may be sad to know that your mortgage payment, however, is HIGHER than what it would have been a few months ago thanks to the rate hikes.
But, don't be discouraged.
Even though your rate is higher, you acquired the property at a much better price than you otherwise would have.
This means that when interest rates drop back down again in (as an estimate) 2-3 years, you can re-finance your mortgage to get your payments drastically lowered.
At that time, you will have covered both of the primary buying objectives:
- Buy at a lower price
And, BINGO! You won at the real estate game!