Ali Reda from Envoy Mortgage explains what rising rates mean.
What impact will rising interest rates have? These increases don’t just affect real estate; they impact every aspect of the economy. We brought in our residential real estate mortgage expert Ali Reda to break it down.
We’ve seen a lot of movement with respect to interest rates in the first quarter of 2022. We anticipated rates to go up—just not this quickly. As a result, buyers will lose quite a bit of their purchasing power. Now buyers are paying more for houses that would have cost much less just a few months ago.
Likely, buyers are going to slow down their activities and weigh their options. Some of them might even exit the market temporarily. In the long term, this slowdown will create a more balanced market, since the presence of fewer buyers will increase available inventory.
If you’d like to get pre-approved for a new home or refinance your current home, contact Ali directly at (612) 940-6722 or by visiting his website. If you’re looking to buy or sell a home, give the John Schuster Group a call or send us an email. We’d love to help you get going.
