Mortgage rates have gone up recently. Is that a bad thing for people buying or selling real estate in Smyrna? Not necessarily. In fact, an increase in mortgage rates can actually work to your advantage, whether you’re a buyer or a seller.
Rates Are Still Very Low
Before you start worrying about how much it’s going to cost to borrow for a home, remember that rates have been at historic lows for quite a while. Increases aren’t as significant as they might seem because the average mortgage rates have been very low for some time now, so any stories about increasing mortgage rates have to be taken in that light.
However, there are some ways that an increase in the cost of borrowing can make it easier to sell your house.
Borrowers Will Want to Get Loans in a Hurry
Rates could go higher, and that can motivate some homebuyers to get lending before the cost of borrowing increases more. Some buyers, worried that they’ll have to pay more to purchase property in the future, might want to make an offer sooner rather than later when they find a good deal. If you’re selling, the overall effect might be more buyers making more offers.
The take away is that you shouldn’t immediately assume that higher mortgage rates act as a drag on your odds of getting a good offer. In fact, the effect might be precisely the opposite.
Lenders Face Reduced Risk
If you’re a first-time buyer or have circumstances that have made it hard for you to get money for a home, increased interest rates can actually work in your favor. Higher rates give lenders more leeway in how much risk they can take on. If you’ve had a difficult time of it finding a loan that suits your needs, you might find yourself with better options if rates go up a bit.
Talk to Your Realtor About Options
We can help you find lenders, no matter how much—or little—you need to borrow to purchase a home. Most homeowners have to borrow to finance a home purchase, and some come to the deal with long-established and excellent credit histories, but that doesn’t mean that there aren’t options out there for people who are getting their first homes. With interest rates slated to go up a bit, lenders are likely to be more willing to give a wider swath of borrowers a chance and, for those who are selling, those buyers might want to make an offer fast, so they can get the least expensive loan possible.