Interest rates are rising—what do we do now? Today I’ll answer three pertinent questions to help you form a plan that makes sense in today’s shifting environment.
First, why are interest rates rising? Due to the high demand for homes, low supply, and rising inflation, the Federal Reserve raised interest rates to undercut demand and curb inflation. So how does that affect the housing market? Inflation has made everything more expensive, and housing is no exception. Home values and mortgage costs have increased by 40% in the last two years.
“Don’t try to time the market with an investment of this size.”
Finally, what can be done about it? Though timing is key for telling a story or making a good joke, it’s not where I would focus when it comes to making a large investment like a home purchase. Instead, consider why you need to buy or sell a home. For many, moving comes as the result of a change in their life circumstances, such as a new job, a lifestyle change, or a growing family. Whatever the case is, don’t try to time the market with an investment of this size. Make a plan to help you achieve your outcomes and stick with it.
If you have any questions about rising interest rates or would like us to help you make a plan to move on to the next stage of your life, give me a call or send me an email. I’d love to help you.