Lot Size6,970 sqft
Home Size1,812 sqft
Days on Market34
3 Benefits of Buying a Home When the Interest Rates are High
- Real Estate Tips
- December 1, 2022
Is There an Actual Benefit of Buying a Home When the Interest Rates are High?
Being a homebuyer in this day and age can be difficult. With home prices peaking nationally and interest rates aggressively spiking, it’s no wonder that many people struggle to find their dream home! Although increasing mortgage rates can affect a home’s affordability, they could offer benefits for you to take advantage of.
Here are 3 benefits of buying a home when the interest rates are high:
A Slower Growth in Home Prices
While home prices have increased in recent years, they might start to slow down due to rising interest rates. Since high-interest rates make monthly mortgage payments less affordable, it could slow down the incrementation in home prices. That means you could have more opportunities to seek a house you’d like than before!
However, the rise in mortgage rates has led to one issue: more competition. Because home prices are decreasing, many buyers will take advantage of the opportunity to secure a house. Additionally, most homebuyers would want to make a deal before higher-interest rates are introduced; that means you could lose the chance to find a good home in a flash!
Unfortunately, while slow growth in home prices can have its perks, it’s a matter of “first come, first serve.” So you should strike at a chance to buy a home quickly if you feel ready to get one! Yet, be aware of some mistakes to avoid when purchasing a home; one error can change the outcome of the entire buying process! Contact Realtor Linda Moore if you have any questions about buying a home.
More Houses Available in the Market
As you may have read, a rise in mortgage rates can attract buyers willing to purchase homes at a low price; however, not everyone can afford to do the same. After all, it can still be expensive to buy a home with the high-interest rates on top of the home price. That means you could have the opportunity of dealing with less competition and get more home choices!
Another reason you may have more home choices is that inventory is rising. In fact, inventory rose to a whopping 30.5% in July of this year! While it doesn’t mean there will be a sudden surge of homes in the market, it can encourage buyers to find the right home. It’s even better to know that houses are staying longer in the housing market, which can give you some time to make a final decision.
A Decrease in Buyer Risk
Before the recent rise in mortgage rates, homebuyers had a lot to risk when searching for a home. With a short supply of homes in the market, buyers didn’t have the chance to look at many different options to decide which house to purchase. It was like a gamble to put your money into a home you’d hoped would turn out well. But now that the housing market has grown a little, it can be a big incentive for you to think twice about a house before buying.
As home prices are less important now than interest rates, you might be more open to considering new houses that you wouldn’t have previously considered. For example, you may find a house that is unattractive but budget-friendly. It may not be appealing now, but if you bought that house, you could renovate some features and save the money you would have spent on another property. The current market is free enough to explore different options and make smart financial decisions!
Want to Buy a Home in Oceanside?
Now that you know the 3 benefits of buying a home when the interest rates are high, you could be interested in purchasing a home. Thankfully, you can start the buying process by contacting Realtor Linda Moore for assistance. It can be simpler than you think to find a Realtor in Oceanside!