If you’re like many people, you know that interest rates are rising – but will that have an impact on you if you’re trying to sell your home? This guide explains.
What Do Higher Interest Rates Mean for Home Sellers This Fall?
This guide covers:
- What is a mortgage interest rate, and why are these rates rising this fall?
- How do higher mortgage rates impact home sellers?
- What can you do to offset the effects of rising mortgage rates on your home sale?
- Are there any other factors that could affect your home sale this fall?
- How to stay informed about changing interest rates and their impact on the housing market
Here’s a closer look at each.
What is a Mortgage Interest Rate, and Why Are These Rates Rising This Fall?
A mortgage interest rate is the amount of interest you pay on your home loan. This can be a fixed rate, which means it stays the same for the life of your loan, or an adjustable rate, which changes periodically.
Mortgage rates are rising this fall because they’re influenced by the federal funds rate – the rate that banks charge each other for overnight loans. This rate has been rising slowly but steadily since December 2015, when the Federal Reserve raised it from near-zero.
How Do Higher Mortgage Rates Impact Home Sellers?
The most immediate effect of rising mortgage rates is that they make buying a home more expensive for buyers. When interest rates go up, so does the monthly mortgage payment. This could cause some buyers to put off buying a home, or to purchase a less expensive one than they otherwise would have.
In addition, rising interest rates make refinancing an existing mortgage more expensive. This means that people who are already homeowners may be less likely to move – which could lead to fewer homes being sold overall.
What Can You Do to Offset the Effects of Rising Mortgage Rates on Your Home Sale?
There are a few things you can do to offset the effects of rising mortgage rates on your home sale:
- Price your home competitively. In a market with fewer buyers, it’s important to make sure your home is priced attractively.
- Offer incentives. You may want to offer buyers incentive programs, such as help with closing costs or a home warranty.
- Be patient. It may take longer to find a buyer in a market with higher interest rates, so be prepared to be flexible and patient.
- Work with a real estate agent. A experienced real estate agent can help you price your home competitively and market it effectively.
Are There Any Other Factors That Could Affect Your Home Sale This Fall?
In addition to higher interest rates, there are a few other factors that could affect your home sale this fall:
- The stock market. If the stock market is volatile, some people may be less likely to buy a home, since they may be worried about their investment portfolio.
- The political climate. Uncertainty around trade agreements or other policy changes could make people hesitant to buy a home.
- The housing market in your area. If the housing market in your area is already slow, higher interest rates could further impact sales.
How to Stay Informed About Changing Interest Rates and Their Impact on the Housing Market
If you’re thinking about selling your home this fall, it’s important to stay up-to-date on changing interest rates and their impact on the housing market. Here are a few ways to do that:
- Check interest rate forecasts. There are many websites and financial publications that provide interest rate forecasts.
- Talk to a real estate agent. A experienced real estate agent can give you insights into how changing interest rates may impact the sale of your home.
- Stay informed about the housing market in your area. Pay attention to news and reports about the local housing market – this can help you understand how changing interest rates may affect buyers’ willingness to purchase a home in your area.
The Bottom Line
If you’re thinking about selling your home this fall, it’s important to be aware of how higher interest rates could impact the sale. By pricing your home competitively, offering incentives, and being patient, you can offset some of the effects of rising rates. And, by staying informed about changing interest rates and the housing market, you can make sure you’re prepared for whatever comes your way.
Are You Selling a Home in DC Ranch?
Thinking about selling your home in DC Ranch? Call us at 602-694-3200 to find out how we’ll market it to all the right buyers. If you’re also looking for a new home, we’d love show you any listing in the community. Let us know what you’re looking for and we’ll be happy to search for something that’s a perfect match for your needs.
While you’re here, check out our:
- Country Club Village homes for sale
- Desert Camp Village homes for sale
- Desert Parks Village homes for sale
- Silverleaf Village homes for sale
Realtor | Founder
The Matheson Team
RE/MAX Fine Properties
21020 N. Pima Rd., #100, Scottsdale, AZ 85255