HOW RISING INTEREST RATES CAN IMPACT YOUR HOMEBUYING POWER
Learn how higher interest rates can affect your ability to buy a Issaquah real estate home as we discuss the correlation between rates and home buying decisions.
Learn how higher interest rates can affect your ability to buy a Issaquah real estate home as we discuss the correlation between rates and home buying decisions.
Let’s say you’re considering a 30-year, $300,000 mortgage at a fixed interest rate of 4% in the Issaquah real estate market.
• Increased mortgage payments.
• Reduced purchasing power.
• The increased cost of living.
• Decreased demand for housing.
• Increased supply of housing
• Higher credit score requirements.
• Stricter debt-to-income ratio requirements.
• Reduced loan amounts.
• Increased down payment requirements.
• Longer approval process
• Reduced demand for housing.
• Increased inventory.
• Slower construction.
• Decreased home equity.
Higher interest rates can cause financial problems for everyone involved. If you’re considering refinancing or paying off debt, knowing how to handle higher interest rates is essential to avoid falling into debt again. Fortunately, here are three strategies to help you best use higher interest rates.
• Lower your expectations.
• Increase your down payment.
• Consider an adjustablerate mortgage.
• Shop around for lenders.
• Be patient.
• Consider a shorter loan term.
• Get pre-approved.
• Mortgage lenders
• Financial advisors
• Real estate agents
• Housing counselors
• Home inspectors
Remember that buying a home is a big investment, and you need to think carefully about your personal and financial goals before you buy.