Rising Interest Rates Hurt Your Real Estate Purchasing Power
Are You Waiting To Purchase? Don't!
Are you waiting for home prices to drop before purchasing property? Did you know that before prices drop, interest rates will go up?
Are you on the fence about listing your home for sale? Do you realize that your potential pool of buyers is about to shrink?
Real estate moves in cycles, generally 10 year cycles. We're currently in the middle of our recovery from the "Great Recession" that started in October 2008, give or take. It's more art than science to predict the exact length of our recovery, but real estate values are rising and likely to continue on that upward path for some time.
And as our recovery gets stronger, interest rates are starting to climb to keep our economy in balance.
If you can afford to take the plunge, now is the time. And as one additional incentive, the mortgage deduction is still alive and well. Every day you wait is one less day you're getting that deduction. That deduction certainly has a big impact on my family's bottom line.
Below is a table that shows the impact of a higher interest rate on your purchasing power. Click on the chart to enlarge it.
Ready to shop? Check out real estate on the market today in and around Silicon Beach and then let's talk!