You may have heard an ugly rumor that interest rates on new home mortgages are going up soon. If it’s true, then it’s bad news for pretty much everyone as it means that homebuyers will have to pay more over the lifetime of their loan, and those selling their homes will now have to account for buyers who can’t get financing as cheaply as they used to be able to.
Well, I’ve got bad news. Rates are going up, according to the Federal Reserve of the United States.
But there’s no need to panic right at this moment. The rates aren’t going to go from 4% to 8% overnight. The Fed plans to raise rates slowly.
However, two things should be kept in mind. First, waiting too long to sell your home may work against you. Even if the fed raises rates slowly, they are still raising the rates, which negatively impacts the market. This means there will be less people who can afford to buy a home and less fish in the pond to sell your home to.
Secondly, because other sellers may be concerned about the rates being raised, this could result in a bit of a home sell-off in the upcoming months. That could have the result of there being more homes on the market than there are buyers on the market, and everyone’s homes may be devalued as a result.
The bottom line is don’t panic but also don’t wait too long to sell if you have a home you would like to sell in the near future. If you do decide to sell you home, consider filling out this form to let Upstate House Buyers take a look at it.