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Today we're talking about what the recent rise in interest rates means for you as a home buyer or home seller.
The Fed has recently raised interest rates, and while they are still at an all-time low, we are starting to get concerned with future affordability. An interest rate rise of 1% cuts affordability by approximately 10%.
That means if you were looking to buy a $200,000 home, a 1% increase in rates would mean you could only afford a home that cost $180,000. When you are able to get ahead and start shopping while rates are as low as they are now, you've got to be ready to begin the process right away.
As a seller, this means that there are less potential people that may be able to afford your price range, the longer you wait until selling.
If you're interested in learning more details about how this may affect you, reply to this email or give us a call. We would be happy to give you a free consultation.
