Rising Rates Mean Buyers Are Running out of Time Northern Virginia Real Estate Podcast with Michael Putnam

How do rising interest rates impact you if you want to buy a home? Allow me to explain why you don’t want to wait. Want to sell your home? Get a FREE home value report.   Want to buy a home? Search all homes for sale. With interest rates on the rise, is now a good time to buy a home? Think back to the peak of the market in 2006—interest rates were at 6%. Today though, interest rates are at just 4%, or 30% less than they were at the market peak. Many buyers today don’t realize when buying a home that the most important part isn’t the sales price, it’s the interest rate. If you waited until next year and they rose to 5%, you would face nearly a 20% increase in your monthly payment. It’s the same as buying a $400,000 house and making a $500,000 payment on it if you wait for rates to go up. Interest rates are as low as they are going to be. When you buy a house, the interest rate is your greatest asset and right now, rates are the lowest they will be. Low rates can mean two things when buying a home: a lower payment or a higher amount you qualify for.  If you’re interested in how much you would qualify for to buy a home here in the Northern Virginia market, give us a call or send us an email. We’re here to help!