For the first time in over a decade, the Fed decided that it was time for a rate hike, to interest rates will be going up. Even though it might seem like an insignificant change, the truth is that these changes in interest rates can impact the buying power of people who are interested in buying or selling a home.
What does it Mean When the Rates are Raised?
The good thing about a rate hike is that it means that the economy is improving, so the Fed is confident that it is safe to increase the interest rates without having a major impact on the growing economic trends. Even though the economy is expected to remain strong, a rate hike still might have a small impact on real estate sales. Higher interest rates means that the buying power will be less for home buyers going forward. So, if you are planning to buy or sell a home, then right now is the best time to take action if you want to lock in the historically low rates before they continue to rise.
Buyers and Sellers: Now is the Time to Act
Most people assume that only home buyers will be impacted by the rate changes, but the truth is that these types of changes could potentially have an impact on both home buyers and sellers. If you are planning to buy a home, then you should do it quickly to lock in the low rates while they are still available. On the other hand, sellers should also take action quickly. By selling now, you can take advantage of the stronger buying power that the buyers have, which means that you will get more equity from the transaction. At the same time, these interest rates can impact your new mortgage if you are planning to purchase another home after your current home sells. As the rates climb, there will be fewer buyers who are in your price range as a seller. So, it is best to act quickly in order to maximize the benefits of selling your home.
Talking with an Experienced Real Estate Agent
If you want to take advantage of this excellent real estate market, then you shouldn’t delay the decision to buy or sell a home. Despite the increase in interest rates, it is expected that the real estate market will continue to grow in 2016, so right now is an excellent time to take action if you are planning to buy or sell a home. It is important that you are working with an experienced real estate team though, because you will get insight from the experts. At Duffy Realty of Atlanta, we are the leading real estate team in the Atlanta area. We invite you to contact us any time, and we will gladly help you buy or a sell a home. Call us today for more information: