Worried about rising interest rates?

Well it happened right away! We are all entering a new and changing real estate market with a sudden rise in mortgage rates. If you’re looking to buy your first home, expand your family home, or buy an investment property, you may be feeling fear and anxiety. I really don’t know how that will affect your dreams or your decision to move forward.

If you think so, rest assured that there are plenty of opportunities and reasons to be positive. You can continue to pursue your homebuying and investing dreams and make your dreams come true.

As interest rates rise, home prices inevitably fall because the average person’s ability to borrow falls.

If you were looking to buy a home in the last six months, you’ve seen extreme levels of competition for very few homes. There are now more homes to choose from, little competition, and lower prices. It’s a win for you, the buyer!

The other major benefit of falling home prices is the fact that the down payment you save may not be as big as you might have expected, leaving you with more cash for furniture and other expenses. You can now pay a larger percentage of the purchase price as a down payment. For example, a 15% down payment 6 months ago is now 20% and you can avoid paying CMHC mortgage insurance premiums.

Another savvy buyer wins! The other thing to consider is that if interest rates rise, they may fall again, and if interest rates fall, waiting buyers will flood the market again. This will increase demand and drive home prices higher. It accelerates the valuation and value of your home or investment, turning you into cash and making you a winner in the housing market as a savvy buyer.

I am here to help you succeed and navigate these changes in the real estate market to ensure victory and realize your homeownership and investment dreams.

– Paul Mann, www.mannestates.com

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