Interest Rates

Don’t fall for headlines about interest rates designed to scare you.

There is so much negativity in the world. And unfortunately, bad news sells.

If a headline can scare you, it grabs your attention. Make sure you aren’t distracted by these headlines. One that I keep seeing over and over is that interest rates are on the rise.

Are interest rates rising in 2022? Most likely.

When I say that, homeowners think the sky is falling and their values will plummet. And buyers think they won’t be able to afford to buy a house if rates go to 4%.

So what happens if rates do rise? Well, if you look at the historical data, rates went up in 2005, 2012-2014, and again in 2016-2017.

But in those years, values still appreciated. In fact, the only time in the past 20 years that values didn’t go up was between 2006-2010. And interest rates were falling during those years!

There is no evidence that values will fall if interest rates go up.

What will happen if you’re a buyer is that your mortgage payment will be slightly higher. It’s so important to work with a lender who will hop on a Zoom call with you. They can explain the difference to you in terms of monthly affordability.

​​If you want the best advice about your local market you need to be talking with a Realtor and a local lender. Don’t let the news instill fear in you.