Are Climbing Interest Rates Giving You A Case of Cold Feet?
If you’re considering the purchase of a new home, but interest rates are holding you back, I encourage you to rethink your position.
I had a lender walk into my open house today. Asked me how traffic had been and I mentioned that it had been pretty slow, not just today, but over the last several weeks – “and it doesn’t matter what location I’m working.”
He indicated that many are skittish with rising interest rates, thinking they’ll go back down, but he said “people are mistaken.”
He said, and I paraphrase, interest rates are more likely to go up, and now is the time to make that purchase before interest rates really start their climb.
He asked, “remember what they were in the late seventies, early eighties?”
Climbing Interest Rates
I arched an eyebrow. “I do.”
“Then you know interest rates today are nothing.
People think interest rates are going to drop back to what they were in 2008 and 2009. They’re not.
If they’re going anywhere, it is up. If it were me, and I were considering a purchase, I’d be making that purchase, whether it’s a first time purchase, upgrading to a larger or better home, or down-sizing, and I’d be doing it now.”
He left. I reflected on a meeting I had attended where investors were discussing the current economies in Arizona. They said people are making more money now, so they’re raising rents because people have the ability to pay.
I’m no lender and I’m not a psychic, and I took off my rose colored glasses a long time ago. I see what’s happening here in the valley.
I shake my head at what’s going on and reflect on the interest rates that were in place back in the day.
Do you remember when interest rates were 17 %?
I’m a proud member of the National Association of Realtors®, The Arizona Association of Realtors®, The Phoenix Association of Realtors® and The Arizona Multiple Regional Listing Service.
I’m a graduate of the Bud Crawly School of Real Estate and a graduate of HomeSmart’s SmartLaunch program (an advanced real estate business and marketing program).