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Buyers Are Rushing To Get Into Homes As Interest Rates Rise

The federal reserve has kept interest rates artificially low while the economy recovered and employment numbers have reached early 2020 levels. Now that this recovery is in effect, and inflation is beginning to creep up, the fed is abandoning its zero interest rate benchmark. The changes seem very small to the casual observer, but over time even the slightest jump in a mortgage rate could translate to potentially tens of thousands of dollars over the life of the loan. This presents many problems for buyers that were not able to get into the home of their dreams by the end of last year

One main problem with the hike in interest rates is that the borrowing power of a buyer will lessen as their lender revises their expectation of what they can afford on a monthly basis. This means that the buyer now has a lower overall budget for the home they wanted to buy from a few months ago. Just this slight change could put some buyers on the back burner as they are priced out of a the kind of home they had their sights set on. I am making a big effort to educate my clients as the situation evolves but there is one important consideration... My clients are always given a competitive advantage since I know of off market buying opportunities, as well as my knowledge of areas that are over or under valued. Please reach out to me so I can help you navigate your real estate goals!


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