If you’ve been keeping an eye on the market, you may have noticed that interest rates haven’t decreased as predicted by experts heading into 2024. In fact, The Federal Reserve has recently pushed the prospect of interest rate cuts even further into the future.
So instead of waiting for those lower rates, let’s change how we look at rates.
Instead of focusing on the interest rate alone, work with a lender or realtor to determine the true monthly payment you can (and want to) afford. While lower interest rates make it cheaper to borrow money, interest rates are just one factor that determines affordability.
Another factor is demand. When interest rates decrease, demand tends to rise as more people can afford to buy. Consequently, prices often begin to rise as interest rates decline. But let’s be honest... we’re not seeing 3-4% interest rates again in our lifetime.
But our lives don’t stop because interest rates aren’t where we’d like them. People are still getting married, divorced, having babies, sending children off to college, and some are having trouble maintaining their home or moving around in their current home as they age.
So your current living needs may change, regardless of an interest rate.
If you’ve been on the fence about moving due to interest rates, send me a message! I’d love to help you figure out your buying power in today’s market and get you moving!
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