Have you heard that interest rates are rising? Recently, the federal reserve raised interest rates to help curb inflation. Experts are now projecting that standard interest rates will range from 3.5% to 4.5% in 2022.
For many buyers, this news can feel incredibly discouraging. Home prices are already high, but now you have to pay higher interest rates on top of it, right?
Not so fast. Our interest rates right now are actually super low, especially when we compare them to the interest rates of the 1970’s-2000’s.
Right now, you’re probably hearing a lot about the “good old days” of real estate. But for interest rates, those good old days weren’t very good. Homebuyers in the 70’s were actually paying tons in interest with a rate of 11.05%, and even in 1980, the interest rates were 13.71% — that’s a giant number compared to today’s rates. It’s just been the last decade or so that interest rates have started to go down.
So yes, interest rates are rising. But that’s no reason to be discouraged. When you compare those rates to the interest rates your parents or grandparents had, you’re still getting a great deal!
My advice? Don’t let high interest rates stop you from buying a home. And if you’re able, try to lock in a low interest rate now by buying a home and getting a fixed-rate mortgage.
However, if buying this year isn’t in the cards for you, don’t worry! Even if you buy a home when interest rates are high, you can always refinance down the line when interest rates are low. When it comes to real estate, it’s a good idea to keep an eye on interest rates. But don’t let them dictate whether you buy a house or not.
If you’re ready to buy a house and lock in low interest rates, feel free to reply to this blog or call me TODAY. I can get you in touch with a great lender and start finding you the home of your dreams!
Karla Saa
CNE | Broker
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HomeTap.ca
RE/MAX Real Estate Centre Inc., Brokerage.
1140 Burnhamthorpe Road West
Suite 141
Mississauga, ON. L4C 4E9
D: 416-881-3770
karla@hometap.ca | www.hometap.ca
