Why Rising Interest Rates Shouldn't Halt Your Home Buying Search
Making Smart Buying Decisions in The Modern Housing Economy
Don't Let Market Conditions Keep You From Your Dream Home
What You Need To Know, In Plain English
Everybody has a dream of what their ideal home will look like, but sometimes the home buying search process can feel overwhelming. Elevated pricings due to economic conditions, additional closing and processing costs, and any potential upgrades or necessary updates can be pricey by themselves as well as add up over time. It is easy for the new homeowner to get overwhelmed before the process even begins. Add a relative increase in interest rates to this equation, and the housing market can feel like an impenetrable bubble.
The good news is that the bubble, though intimidating, is not as thick nor as impassable as it may seem on the outset. Take the current situation with interest rates, for example. Over the last several years there has been a reported increase in rates, with current rates sitting around 7% as of December 2022. Initially, these numbers may appear to be a non-starter, and many potential home buyers may be deterred from buying a home altogether because of it. While higher rates can be a complicator in the home buying process, they don’t need to have the final say in how you proceed. Today we’ve listed out some of our strongest reasons why you shouldn't let rising interest rates halt your home buying search. Don’t let the rising interest rates stop you from achieving your dream of homeownership. As always, consider every element of your current financial situation before making any large purchases like property or home. For expert assistance, contact our team today and we would be happy to help!
The Truth of The Rate Rise
Putting Today’s Pricing into Context
Interest rates are currently on the rise, but it's important to put this rate increase into context. In short, this means understanding not only how interest rates have changed over the past few years, but over decades. Within that context, it becomes clear that the current rates are still lower than the average over the past thirty years. This means that even with this recent rate hike, mortgage rates are still fairly low, and buying a house today is much more affordable than it has been in the past.
If you’re searching for the perfect home in Raleigh or the surrounding Triangle area, A Cole Realty can help you find the right fit. At A Cole Realty, we specialize in Home Search in the Triangle market all the way to the coast of North Carolina and can help you find the perfect home for your family.
We understand that buying a house is an important decision, so we’ll work with you to make sure you have all the information necessary to make an informed decision. We have years of experience in Home Buying Search and have helped many families and investors find their ideal homes. If you're interested in learning more, please connect with us here! We can't wait to hear from you.
Things to Keep In Mind for Home Buying
Ways To Maximize Success in Your Home Search
If you’ve been considering buying a home in 2022 or 2023, there are some key points to keep in mind. With the current market conditions, interest rates are still on the rise and this could affect your ability to find an affordable mortgage. However, with the right research and preparation, you may be able to find a great deal on a home. Here are some tips to help you on your home buying search.
As professionals, we have seen many prospective home buyers struggle to find their dream home, only to be caught off guard by the rising interest rates. By doing your research and understanding the current market conditions, you can maximize your chances of success in finding a great deal on a home. A few key tips are as follows:
1. Start Your Home Search In Raleigh Early - Interest rates can change quickly and it's important to start your search for a house in Raleigh as early as possible so that you have time to find the best deal. A Cole Realty can assist you in your home search and help you find the perfect home for you and your family.
2. Invest In A Professional Home Inspection - A professional home inspection is important to make sure that your investment is a good one. A qualified inspector will check for any potential issues with the house, such as mold or pest damage, which could cost you more money down the line. A Cole Realty can help you find a qualified inspector for your home search in Raleigh.
3. Consider All Your Financing Options - Rising interest rates may make it more difficult to qualify for certain loans, so it's important to consider all of your financing options when buying a house in 2022. Take time to understand the different options available to you at this time, and move to make the most of your current buying power. At A Cole Realty, we work with a preferred lender who can help walk you through your options before you ever start looking at homes!
The Future of The Industry
Home Prices And The Effects Of Rising Interest Rates
So what is the future of home prices? Despite the rising interest rates, buying a house can still be a smart investment. Whether you are buying your first home or making an investment in your portfolio, a home can become a major source of personal value and happiness.
Rising Home Prices
Despite the rise in interest rates, home prices are not expected to drop anytime soon, and equity is still rising at remarkable rates. This steadying of the market may be due to a number of factors, such as work from home leading people to relocate to smaller cities, amongst others. However, there is no guarantee that prices will not continue to increase as general population increases and economic factors change. As such, now may be a good time to buy a home in the Raleigh area.
Opportunities to Refinance
Fortunately, in some situations, refinancing is also an option. Refinance allows you to change or revise the terms of your loan, usually to something more preferable for the loan recipient. Should at some point in the future the interest rate reduce to a number that you find more preferable, refinance may become an option. Of course, consult with financial experts before making any large changes to your mortgage loan or any other loan that you may be considering.
Despite the rise in interest rates, home prices are still expected to continue rising in the coming years. Home buyers are certainly getting plenty of attention as experts predict that home prices will keep on going up despite rising interest rates. It's a good sign for investors but could spell uncertainty for those just starting their home buying search in Raleigh or elsewhere. The cause of this price hike may be attributed to population growth and the limited availability of housing, making it more advisable to purchase now before prices become even higher. Don't let rising rates scare you off; if you want to get into the game, doing your homework and acting fast could be the key to success.
How Our Team Can Help
Despite the current rise in interest rates, there is still plenty of opportunity to find your dream home and become a homeowner. With the help of A Cole Realty, you will have access to an experienced team who are ready and willing to assist you in your home buying search in Raleigh. Utilizing our expertise, you can successfully find the perfect property at the right price, while we ensure that you are able to make the most of your home search. With sound financial advice and a comprehensive understanding of the current housing market, A Cole Realty can help you find a great deal on your dream home in 2022. Don't let rising interest rates stand in the way of your dreams – connect with a member of our team today to start your home search with one of the best in Raleigh.