We understand that home sellers and buyers are looking at the current housing market with a mix of anticipation and trepidation, and many have been asking the same question: What’s going to happen with interest rates? No one possesses a crystal ball to predict the future, but at Bosshardt Realty, we are committed to offering you the next best thing—knowledge, insights, and expert guidance to help you navigate the ever-evolving landscape of real estate. I recently watched an enlightening segment on CNBC where expert Rick Santelli shared a prediction that the 10-year treasury might climb to 13% in the next five years. I wanted to share this insight with you, not to alarm you, but to empower you with information as you consider your real estate journey.
As you navigate the market, it’s essential to have all the facts and make informed decisions. Here are a few takeaways from this prediction:
- 1. Buy Now, Potential to Refinance Later: If you secure a mortgage now and interest rates decrease in the future, you’ll always have the option to refinance. However, if interest rates rise, you’ll be in a strong position, having locked in at a more favorable rate today. This flexibility can provide you with a valuable safety net in an unpredictable market.
- 2. The Cost of Waiting: Many homeowners have expressed past regrets about not securing a property when the conditions were just right. With the current economic predictions, it’s worth considering the benefits of acting sooner rather than later. Waiting for the “perfect” moment can sometimes lead to missed opportunities.
- 3. Equity Growth Potential: As Mr. Santelli suggests, if interest rates rise, it could slow down the pace of home price appreciation. For those who invest now, this means your home equity might grow from both your consistent mortgage payments and any potential future price increases. In essence, by taking action now, you could be building wealth through homeownership.
At Bosshardt Realty Services, LLC, we are dedicated to keeping you informed and providing the best advice for your unique situation. Whether you’re thinking of buying or selling, or even if you just have questions about the market, we’re here to help.