Interest rates are up and the real estate market has not slowed down. It's still increasing.
Why Now Is a Great Time To Buy a House JustListedKnoxville.com
Interest rates should not stop you from owning a Home of your own.
Interest rates do affect house prices, and there’s typically an inverse relationship between the two. When the Federal Reserve raises interest rates, home buyers can’t afford expensive houses, so the prices will start to drop.
The reverse is also true – when mortgage rates are low, buyers have more money to spend, so home prices will start to rise.
Buying now locks in your home price ( when rates go down prices go up ), when interest rates come back down, you can refinance an old mortgage that you had at 6% or 7% or wherever it lands in the future.
The ideal scenario is to buy a home when both interest rates and home prices are low, but that isn’t always possible. So, as you’re considering home prices vs. interest rates, it’s important to keep in mind that one isn’t necessarily better than the other.
The housing market predictions are about as reliable as weather forecasts. That’s why it’s essential to do your research and ensure it’s the right time for you to buy before taking action in the market.