How Interest Rates Affect Both Sellers and Buyers

This is how rising rates will affect both sellers and buyers.

Are you looking to buy or sell a home this year? If so, have you wondered how interest rates will affect you? Most of the time, we think that interest rates are only crucial to buyers, but they're also important to sellers.

If you want to sell your home and interest rates rise 1% this year, buyers will be able to afford less. Therefore, sellers may see their values fall and attract fewer buyers. As a buyer, if interest rates rise 1%, you can afford 10% less. If you qualified for a $300,000 mortgage in December, a 1% rise in rate would mean that you now only qualify for $270,000. If you were looking for a $300,000 home and couldn't find something that made you happy, you’re not likely to find an ideal home for $270,000.

Interest rates will increase this year, so if you have any interest in buying or selling, you should get in the market soon. If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.