Rising Rates, Not Always A Bad Thing
The Real Estate market is certainly booming. Depending on where you're at in the Real Estate picture, higher mortgage rates can be a good thing. While rates were low, so was inventory, it still is, but I've seen a slight increase recently as more sellers realize the price they can get for their home. People who normally wouldn't be able to finance a home could and are still able to do so as it stands now. However, rising rates, means an increase in sales. Which is certainly a good thing! Luckily the rise in rates isn't too drastic just yet.
Rising Rates, Not Always A Bad Thing
Of course it's not all good news. The rise in rates can leave some people out in the cold with the banks. I've seen this happen in my own business. Just last week when the rates jumped almost a full point, my client who is a first time buyer in a new escrow went from qualifying for a $400k loan amount to a $390k loan amount, leaving her $10k short on her purchase. This is something I believe we'll be seeing a lot more of in the months to come as rates rise.
Rising Rates, Not Always A Bad Thing
However we need the rise in rates to balance out this market which has been a complete frenzy since January 1st. We could not sustain a healthy market with prices rising as fast as they have been this year. As long as they don't go too high too fast, as a Real Estate Professional, I welcome the change.
Rising Rates, Not Always A Bad Thing
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