For most of this year, financial experts have been predicting that mortgage rates are likely to hit five percent by the end of the year. That seems to be coming true, as rates have climbed over the past few months, and are projected to keep doing so for the rest of the year.
This might leave people interested in buying Smyrna real estate a bit worried that the increasing rates will be too much a financial burden for them to go through with their buying plans. Don’t fret, however, as, for most people, a small increase in the going rates for mortgages will not make a significant difference in the logistics of buying a home.
There Are Benefits to Higher Rates
Worried about rising mortgage interest rates? So are a lot of other people, and that’s actually not bad news if you’re in the market for a home. When mortgage rates climb, real estate buyers tend to be more hesitant about spending money and that means that it’s much easier to get a buyer’s interest when you make an offer on a home. With fewer buyers looking to purchase, there’s less competition for each Smyrna property and that means your Realtor can drive a harder bargain on your behalf.
If You Have Good Credit, Higher Rates Can Benefit You
When mortgage rates go up, home sellers aren’t the only ones who see less interest from those shopping for a home. Whether you’re looking for a new mortgage or refinancing your home, you’ll find that mortgage lenders have to work harder for business when rates are higher, as well, and they’ll likely be willing to offer you a better rate than they would when the overall rates are lower. Sound counterintuitive? It’s not. There’s simply less business for mortgage lenders when rates climb and, if you have good credit, that means you have more leverage to use to get the best deal possible on your borrowing!
Tell Your Realtor You’re Serious About Getting a Good Deal
Not all home buyers are the same. Some are most interested in getting precisely the right property for them and others are more interested in getting a great deal on the home’s price. Let us know if you’re of the latter type, because higher rates and fewer buyers mean they can really push hard to get buyers to drop their prices.