The Federal Reserve raised its interest rates to try to slow inflation. What does that mean for home buyers & sellers?
Home Buyers
Simply put, higher interest rates cost home buyers more money.
Is now the right time to buy a home?
If you like where you live you may decide to wait to buy but rates may not come down anytime soon.
If you are truly ready to buy a home, now is the time to do so as interest rates are predicted to go up again a few times by the end of the year and it is always a good idea to build wealth by purchasing real estate
Tips:
Try to put at least 10% down (20% is better because then you can avoid private mortgage insurance)
Make sure your monthly mortgage payment is ¼ th or less of your take-home pay.
Better yet
Pay 100% cash for your home. Then you never have to worry about interest rates!
Home Sellers
Buyers are out there and are ready to buy a house and homes are still selling at record highs, but the pool of qualified buyers has slowed, and inventory has increased both of which can make your house harder to sell than it did just a few weeks ago so you want to make sure it is show-ready, you have an excellent marketing plan with a qualified real estate agent and it is priced correctly.
Will the recession effect real estate prices?
The impacts of recessions can be felt across the entire economy, everywhere from employment to spending to stock market movement, and even real estate. While the stock market and the housing market can fall during a recession, it isn't guaranteed to happen.
In fact, falling prices are less common than you may think. Home prices have remained steady or risen during the last five recessions, aside from the Great Recession and the recession of 1990. Read more here