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What rising interest rates mean for both buyers and sellers.
Mortgage interest rates have been a big topic in the news recently, and it’s no secret they’re going up. We’ve already been told that they’ll go up again this summer. What does that mean for buyers and sellers?
Every 0.5% increase in interest rates lowers a buyer’s purchasing power by 5%. As a seller, that can shrink the pool of buyers interested in your home. As a buyer, you may have been pre-approved earlier at a lower interest rate, but now that interest rates have gone up, your purchasing power has diminished by at least 10%.
It’s still a great time to sell in Austin; inventory remains low, and prices haven’t decreased. We’re still firmly in a seller’s market. For buyers, we know that interest rates will rise this summer, and if you want to purchase a home in Austin, your purchasing power is higher now than it will be in the coming months.
Now is not the time to sit on the sidelines. If you want to buy or sell, call me today, and we can talk about how my team and I can help you achieve your real estate goals.
