“Why should I care about interest rates?” We’ve received this question almost every day from sellers, so today we want to discuss how interest rates affect buying power, the market, and more:

1. Buying power. It’s difficult to overstate how much interest rates affect buying power. Since most buyers need a loan to purchase a home, interest rates are probably the biggest factor in their monthly payments. If buyers can afford less, you’ll have fewer offers coming in every time interest rates increase.

“Most sellers need to buy after they sell their home.”

2. The market. The truth is that there’s only one market. You may have heard of seller’s markets and buyer’s markets, but 89% of sellers turn around and buy a new home within a year. If you’re selling your primary residence, you’ll need to purchase a new house after you sell. Since rates are rising, you need to get every penny possible out of your current home so you can afford a fantastic new property.

3. The Federal Reserve. Rates have already increased a lot this year, the the Fed has announced they plan on further hikes throughout 2022. This means you should try and sell your home as quickly as possible. If you wait too long, rates could rise further and hurt your bottom line.

If you are looking to sell soon or have any questions, please call, email, or reach out on social media. We would love to help you get the best deal possible for your property.