Published March 3, 2022
How Will Interest Rates Affect Buyers?
Answering some first-time homebuyer questions about our market.
Lately we've been getting a lot of questions from first-time homebuyers who are understandably discouraged by our low inventory, so today we’ll take some time to address one of the most common queries and talk about how interest rates factor in.
Do you need to put 20% down to buy a home? No! We have accepted several offers on our listings that only put 5% down. The buyers simply constructed their offers with really favorable terms beyond the down payment. It’s still possible to get into a house for 3.5% or 5%.
"Rising interest rates will strain affordability even more."
Moving on to interest rates, the increases we’ve been seeing will put further strain on affordability and impact our market overall. If you were looking to buy at your maximum approved price, you’ll feel the stress of interest rates.
Interest rates have risen a whole percentage point in the last 45 days, moving from around 3% to just over 4%. That means you’ll be approved for up to $50,000 less than you were 45 days ago.
We have a full team of highly qualified agents, including the best mortgage guys in the industry. You need to know how to construct your offer in this market, and we would love to help. Feel free to give us a call or email us. We look forward to serving you.
