Low interest rates are good for buyers, but they’re also good for sellers. Here’s why.
When we’re talking about interest rates, their importance really comes down to one thing: affordability. For every point that interest rates go up or down, it affects the buying power of buyers by 10%.
For example, if you are approved for $300,000 and interest rates go down by 1%, you can now afford $330,000. That’s significant.
What does this mean for home sellers? Essentially, it means there are more buyers and more competition for your home. This gives you a greater chance of receiving multiple offers and being able to negotiate from a position of strength. This will also allow you to choose the best price and the best terms.
If you’re a buyer, you still have to be in a position where you can compete effectively. You need to be working with a good agent who is going to make sure you win and give you a competitive advantage in the market.
Before you get out there into the marketplace, let’s check in with the interest rates and make sure you’re tied in with a lender who is going to serve you best.
If you have any other questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.