No one wants to pay more in interest when getting a mortgage. That’s a no-brainer. But a rise in interest rates do have benefits if you are in the market looking for a home.
Here are a few of those benefits:
Less Competition
Buying a home is a big investment and with a purchase like that you don’t want to have to settle on a place just because of the way the market is. With the higher interest rate though, many potential buyers may hold off in the hope that rates will drop again. That means less competition for you and more of an opportunity to get the home you want instead of having to settle on something you really didn’t want.
Home Prices Will Become Cooler
People have to move for various reasons at all times of the year. Not just when the market is scorching hot. Now though with higher interest rates and less people in the market to buy, buyers can negotiate more and have the opportunity to buy at a better price, especially if a seller is eager to get out.
The rise of interest rates may hurt some but it also has some really good benefits for those that can still afford to buy.
For additional questions on interest rates and the South Florida Real Estate market contact us at Alliant Title & Escrow at 561-912-0922. We would be happy to help.