Why Interest Rates Are Climbing and How to Plan Ahead
What Higher Rates Mean for Buying and Selling This Season
As we get deeper into fall, it seems our economic and interest rate picture is changing rapidly.
Since the start of the war, and increases in tariffs, we have seen inflation (and interest rates) stay over 5%. Currently, interest rates are sitting at 7.5% and are expected to continue to rise. That is in a large part due to the bond market.
The bond market matters, because it is what backs the US backed lenders. So when faith in the bond market goes down, they need to raise interest rates to entice people to buy them. That directly impacts the lending market. That means, interest rates will most likely continue to go up, not down… and this will most likely remain the case thru the spring next year (although we are hoping things will change).
What does that mean for you? As a buyer, if you are liking something now, and can lock your rate, it is recommended. Make sure you are budgeting the increase in interest and give accurate info to your lending broker.
For sellers- that means that your house will need to be buyer ready. The homes that are done well, and priced right are still moving. Buyers are just fewer, and honestly- pickier. If you are planning on listing in the near future- make sure you start talking with me asap so we can put you in the best position to succeed.
On a brighter note- I am going to host a final event this year (yay for the early save the date if you have read to this point). HARVEST (in my backyard) Nov 12, 6-8pm. It is complementary and a great time to re-set before the holidays.
