Did you know that for every .25 percent that rates go up, it affects the amount you are approved for by about 10,000 dollars? Of course this amount varies depending approximately on how much you’re approved for and how much you are putting down. But you get the picture.
Rates are supposed to be going up another two times this year. We haven’t seen a huge shift in the market since the first increase in rates. But to say that the market hasn’t changed would be a misconception.
We all know that selling a home in most cases in the PNW is NOT an issue. We have seen many people moving in for the vast amount of job opportunities this area has to offer. We have also seen a huge influx of cash investors coming in to buy land, homes to rent, and homes to flip. We are all well aware that there is a lack of homes on the market selling right now.
But could it be that one big reason people don’t want to sell is because the rates are going up? With rates going up, even the people who want to downsize are often choosing to stay in their homes. This is because nowadays your mortgage might end up around the same amount if you are planning on buying after selling your home. This is why it is important to work hard at keeping a good credit score, as well as have a good loan officer advising you to prepare your finances to buy. Having your finances well prepared will help you get a lower interest rate. Which will save you money, and who doesn’t like saving money?
If you would like to get any information on loan officers that I trust, contact me and I will get you plugged in with someone that will help guide you in the right direction.