Don’t be Scared by Rising Interest Rates

If you’re in the market to buy a home, you’ve likely kept an eye on interest rates, which have been on the rise as the Federal Reserve tries to combat inflation levels. You may be thinking of calling it quits on your home search, but don’t be scared by the rising rates. There are, in fact, several advantages to purchasing a home now.

Many buyers have decided to wait to see if rates decrease, before locking in. This means there is less competition for homes that are currently for sale, and that your offer on a home may be the only one the seller is considering. Real estate agents at Expect Realty are experts at writing offers that are attractive to both buyers and sellers for homes in Gulfport, Biloxi, Bay St. Louis, Ocean Springs and any of our other coastal communities.   

There are signs that the market is softening, as the available housing inventory has increased – meaning more options for those who are still shopping. 

For those renting, rents are also on the rise and will likely continue to do so. Waiting to purchase a home not only costs you more now with rising rent, but also for your future. With a home purchase, you build equity in your home and, ultimately, personal wealth. 

It’s likely interest rates will continue to rise, there’s no way to time the market. Buying now allows equity to start building immediately. Plus, waiting to see if mortgage rates decrease could put you in a position with many other buyers who are entering the market, and more competition for homes. 

It is true that rates are higher than they were last year, but they also remain much lower than they have been in the past. In the 1980s, it wasn’t unusual to see double-digit interest rates on mortgages, with rates reaching their highest point in 1981 at an average of 16.63%, according to Freddie Mac. Imagine how that impacted a monthly payment!

In today’s market, it’s more important than ever to work with a trusted real estate professional, like those at Expect Realty, who can help you through the process of buying a home on the Mississippi Gulf Coast. It may seem scary, but waiting longer can present additional challenges. Contact one of our buyer specialists today at 228.215.1861 to begin your home search.