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Are mortgage rates climbing higher?

You might be wondering if now is a good time to commit your financial resources toward buying a house, or whether interest rates are too high for you to finally make that purchase. In today’s blog post, I’m going to teach you how to navigate the crazy real estate market seas in which we currently find ourselves. Here are a couple reasons why it’s the right time to buy a house.

1. You can lock in a lower interest rate before they continue to increase.

Currently interest rates are higher than they’ve been in a few years. This means that housing prices are going up — not just the cost of a house, but the monthly payment increases due to the increased interest rates. However, if you look at the rates over the past 40-50 years, we’re still, historically, on the lower end of interest rates. The other thing we know is that the Fed is signaling that they’re going to raise interest rates again. This means that if you pass on buying, you could end up paying way more for a house if you decide to buy in the future, as opposed to right now.

2. You can always refinance if the rates drop.

You might be asking, “But what happens if interest rates drop and I’ve already bought my house at a higher rate?” The good news is that you can always refinance in six months to a couple of years when the interest rates decline. But what you can’t do is hedge against the rates if they continue to rise.

3. Inventory is increasing.

The number of houses available to you are slowly but steadily increasing. This means that you don’t have to settle for a house that you may not want. This gives you power when purchasing and you don’t have to rush your decision making because there is a shortage of homes that fit your budget and preferences.

4. The number of homes selling for over asking price is decreasing.

Remember a couple of years ago when it was normal to pay at least 10% over the asking price when you were up against 25 other offers? You’re not seeing that as much any more. This means less anxiety and stress during the purchasing process, which puts you in a great position.

5. Homes are still appreciating in value and they don’t seem like they’re going to depreciate any time soon.

This means that if you buy now you’re investing in a property that will continue to appreciate for the foreseeable future. And even if the worst does happen and the property depreciates, as long as you’re in it for the long haul it will still appreciate over time. 

Would you rather buy now and have your asset increase in value, or wait for a year when a) the interest rate might be higher, b) the same house will cost more,and c) you won’t see any of the appreciation of that house because you “played it safe.” As long as you’re not overbuying, are in it for the long haul, and aren’t in a rush to settle, you shouldn’t limit yourself because the interest rates are slightly higher now.

As a final thought, as I always say, let life decide things for you. Don’t try to time the market too much, make wise decisions for where you are at in your life, and enjoy the process of buying a house!

As always, if you have any questions at all feel free to reach out. You can shoot me an email at or give us a call at (619) 285-2301.⠀

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