All indicators are pointing to interest rate hikes in 2022. When, how much, and how many are still under speculation, but the one thing experts agree on is that they will rise. How can you prepare for the upcoming rate hikes?
- If you are considering buying a home, now is the time. Work with your mortgage broker to lock in a low rate. Make sure the rate is fixed and won’t vary.
- If you have your eye on a home, but the current owner needs a longer move out date, go ahead and purchase it at the lower rate and lease it back to the owner. A real estate professional can help you properly write up a contract with the specific details.
- Pay off as much debt as possible, especially credit card debt and any sort of variable rate loans. These are the things that can get out of hand quickly and cause many financial problems that will hurt you homebuying potential.
On the other hand, rate hikes aren’t all bad for homebuyers. Last year’s soaring demand and low-interest rates sent prices rising beyond reach for many would-be homebuyers. Buyers found themselves in bidding wars and/or making hasty decisions. For most Americans, the main way of accumulating wealth is through homeownership and last year’s dramatic price increases squashed that dream for many. That is a problem that not even low-interest rates could fix. Experts don’t expect a dramatic decline in home prices, but the dramatic increases are forecast to tamper down a bit allowing a larger pool of buyers to become homeowners.
One thing is for certain, planning is crucial, so get with an agent, find a lender, and start planning. Stutesman’s Action Realty has a line-up of professional real estate agents ready to help their clients make that purchase or sell. Reach out today, 833.286.8400.