How you can talk to your homebuyers about higher interest rates.

In our office, we’ve been engaging in meaningful discussions with our buyers about the ongoing trend of rising interest rates. The question on their minds is whether to make a purchase now, continue renting, or hold off. As you might expect, my guidance is clear: I never advise buyers to wait unnecessarily.

Of course, the timing of their purchase should align with their individual circumstances. However, I firmly discourage delaying the decision to buy. When it comes to predicting the interest rate market, it’s virtually impossible. My belief is that interest rates will likely ascend before they show any signs of coming down.

“Rates are still historically low. ”

The reason I advocate for buyers to act now is that postponing their home purchase only delays their wealth-building journey. Despite the fact that interest rates may seem relatively high today, they remain historically low, presenting a favorable window of opportunity.

One additional proactive step to take is to ensure that, on a monthly basis, your in-house lender or the lender your buyer is working with updates their pre-approval every four to five weeks. This helps confirm that they are still within the desired price range. As you’re well aware, as interest rates climb, purchasing power diminishes.

If you have any questions or if you’d like me to address specific topics or challenges in a video, please don’t hesitate to call or email me. I look forward to hearing from you.

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