Will the Rising Interest Rates Impact the Housing Market?

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Lloyd Mize
Harvest Team Real Estate

It was recently announced that interest rates will be going up again, leaving many people to wonder how these changes will impact the real estate market. If you are planning to buy or sell a home, then it is essential that you watch the trends and how they will affect your transaction.

Higher Interest Rates, Higher Mortgage Payments

As the interest rates go up, they have a trickle-down effect and change mortgage payments. Since more of the payment will be going to interest, buyers have a smaller budget for the purchase of a home. As a result, increasing interest rates will decrease real estate prices over time.

But, a small change in interest rates won’t have a big impact on your family budget. For now, most people won’t notice much of a difference. If an interest rate is .5% higher and you have a $300,000 loan, then you can expect to have your monthly payment go up by about $85 per month. Most families can integrate this payment into their monthly costs without a problem.

What to Expect In 2017

The real estate market is strong right now, so these changes will be small. In fact, it is expected that the economy will hold strong and interest rates will rise again later this year.

If you are planning to buy a home this year, then your best option is to take action as soon as possible. Delaying your home purchase could result in a higher interest rate and higher mortgage payments. Lock in your lower interest rates right now before the rates go up again!

Are you looking for a home in Temecula or the surrounding areas? Then it is essential that you have an experienced real estate agent to help. Your agent will help you navigate the paperwork and negotiate the best deal for your property. These services are essential so that you can maximize your budget and protect your family finances.

Before you buy or sell a home, talk to the leading real estate team in Temecula. Contact Lloyd Mize at Harvest Team Real Estate at (951) 551-1677