Interest rates have gone up recently, and today, I'll discuss why that's actually a good thing. It also means that if you're thinking about buying a home, the time to act is now.
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How will rising interest rates impact you as a home buyer, home seller, or homeowner in the Waterloo market?
Rising rates can strike a bit of fear into us. However, rates are just over 4% right now, which is still a phenomenally low rate. It means that we have a stronger economy, and that's a good thing. A bump in interest rates means that there is confidence in the marketplace.
Not only are interest rates higher, our stock market is at some of its highest levels ever. This means that there are strong economic indicators that things are looking really good for the future. Higher rates are actually a positive thing.
The buyers who have been sitting around thinking about buying a home should know that every time your interest rate rises by 0.5%, you lose about $25,000 in buying power. Now is the time buy! Rates have been predicted to rise every year, but they've been dropping lower and lower until this year. In fact, rates are up about 0.5% over the last six weeks.
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Higher interest rates are actually a positive thing.
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If you're thinking about buying a home, there isn't time to wait—I would do it now. The energy in the Cedar Valley is awesome and the market is really hot. January is an active month, and part of it is due to the consumer confidence in our market. Time to jump off the fence and buy a home!
If you're ready to buy a home, give me a call or send me an email today. I hope to hear from you soon!
