How interest rates affect home purchase? | Knob & Key Realty Partners

How interest rates affect home purchase?

Interest Rates

Interest Rates

What’s really on everyone’s mind as we start into fall? Those crazy interest rates.  With the federal reserve raising rates one more time, is it a good time to buy a new home?

The answer is yes! And here are 3 reasons why buying a home in today’s real estate market is a great investment:


First of all, the home you love today is only going to be more expensive if you wait.  Additionally, that same home will not still be on the market next year. No one wants to regret the one that got away.

There isn’t anything in the forecast that predicts that prices are going to go down.  Go ahead and buy that home you love.


Secondly, inflation. Home equity is the perfect hedge against inflation primarily because: As inflation rises, so should the value of your home. Building equity in your home is a great financial investment for you and your family.


Lastly, interest rates won’t last forever.  Many lenders (We like this lender and this lender) are already offering mortgage programs to refinance your home once interest rates go down.  Some of those programs offer buying down the rates and others are adding incentives to help borrowers.  Even home builders are offering incentives like additional dollars towards closing cost or rate buy downs that will encourage you to buy their new homes.  All of this will put you in an even better position and help you build equity faster. Plus stay in the home you love.

So, if buying a home is in your future and you’re not sure what to do next. Let’s put a strategy together. Leave a comment below with your questions or you can reach me here.  Let me help you find a lender. We will work together to find the best home for your family in today’s market.