Rising Rates Mean Buyers Are Running out of Time

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.

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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!