Why Interest Rates Shouldn’t Scare You from Buying a House
For much of 2020 and 2021, the mortgage interest rates were at all-time lows. However, with inflation and many other economic factors, interest rates started to go back up to what is more typical of rates.
With the interest rates higher than they have been in the last few years, some buyers are nervous about getting into the real estate market because they think they will spend too much money in the process. However, now is still a great time to buy a home, even with higher interest rates. Some of the reasons that right now is a great time to purchase a new home, despite higher interest rates, include:
- Buying a home is still a great investment: It is still a good decision to purchase a home, especially if you plan to be in the home for a long time. You can also deduct your interest during tax time, making it more affordable and lowering your tax bill.
- Rates are still historically low: Yes, the rates may be higher than what buyers were paying a year ago, but they are still historically lower than what some buyers have paid over time. For example, in the 1980s, mortgage rates got to 16% at one point!
- Hard to know what the rates will do in the future: Some buyers are waiting, hoping that the rates will go back down in the future. But it is hard to know if that will happen anytime soon. It is possible the rates will continue to go up and it may take many many years for them to come back down.
- You can always refinance: If the rates do take a nosedive in the future and you find that you qualify for a lower rate, it is possible to refinance your mortgage. Having a good deal of equity in your home can make the refinancing a bit easier as well.
While you may be looking back at the interest rates that we saw in 2020 and 2021 and wish that you had jumped in the market at that time, now is still a great time for you to purchase a home. There is plenty of inventory, purchasing a home is a great investment, and interest rates are much lower than we have seen in many years. When you are ready to get into the market, working with the best real estate agent team in North Carolina, Smith Marketing,can help you get a great deal and find the ideal home for you and your loved ones.
There are a lot of great homes available in the Greensboro real estate market and now is a great time for you to get into the market and see what is available as a buyer. Even though interest rates have moved up, there is still a good amount of inventory and Smith Marketing of Allen Tate will help you find the best deal on your next home. Trust the best real estate team in North Carolina to help you through every step of the home buying process.