Why Higher Mortgage Rates Might Not Be A Bad Thing
It is easy to feel "doom and gloom" when you see mortgage rates continuing to rise, but believe it or not, it's not ALL bad. Sometimes we have to try to train our brains to look on the positive side of things. I know you are probably asking, "how in the heck can higher mortage rates benefit anyone?" "How can higher mortgage rates not be BAD?"
Here is a list of some reasons that higher mortgage rates may not be as bad as you think:
1. Higher mortgage rates are a sign of a strong economy. This means that more people are working and with the current inflationary pressures many businesses are offering to pay higher wages to their employees.
2. The housing market may finally stabalize over time. As a seller, you may be thinking, you have to take a little less for your home. This may be true, but you will probablly be paying less for the next home that you purchase as well.
3. There are still plently of buyers that have to sell a home before buying their new home. If that seller has lots of equity in their home, then it is less likely that the higher interest rates will affect their new home purchase as much.
4. When all is said and done, you are better off buying a home for less and paying higher interest rates for a while. You will have to pay property taxes, for the entire time that you own that property, based on the purchase price of your new home. If you buy a house for less, you will owe less taxes every year.
5. Homeowners insurance, if you have a morgage, will be based on the purchase price. If you get a home for less, your required homeowners insurance will cost you less.
6. There will be a smaller inventory of homes on the market, making the demand for homes go up.
7. When interest rates go back down, you can always do a refinance and still continue getting the benefits of paying less taxes and less insurance.
Renee' Olivier
Realty One Group Immobilia
3421 N. Causeway Blvd., Suite 305
Metairie, LA 70002
Cell Phone: (504) 800-3042
Office: (504) 405-3211
Licensed in the state of Louisiana
Each office is independently owned and operated