Navigating Rising Interest Rates

In the second half of 2022, we saw mortgage interest rates quickly rise. This has been alarming for many home buyers, and it can be tricky to navigate what this means. Here is a quick explanation of what you can expect.

With interest rates climbing, you will still qualify for a loan and now is still a good time to purchase a home. You will just need to be mindful of your monthly payment with the new interest rates. For example, someone who purchased a $200,000 home in October 2021 may pay $100 less per month than someone who purchased in October 2022. The home is worth the same, and the extra payment goes toward interest.

The bright side? The rising interest rates could cause home prices and competition to purchase a home to decrease.

So if you are in the market for a new home now, the best thing to do is to continue searching for a home that suits you while being mindful of current interest rates.