My friend Jay Vorhees at JVM Lending recently wrote about this, and I wanted to share a couple graphs he included in the blog to give context to the “rising” interest rates.
As Jay mentions in his blog, there is perspective to be considered when discussing the rising interest rates. They HAVE risen (1/4% – 3/8%) since last summer, but did you know they are actually lower now than they were on April 1st of this year?
Or that they remain lower than they have been for most of the last 10 years? And significantly lower than where they were for most of the last 45 years? As Jay puts it at the end of his blog, today’s rates remain a gift!
Here are those graphs for context (first, mortgage rates over the last 10 years, followed by rates going back to 1971):
So, if you are on the fence about purchasing, rates are still very low and we are only just starting to experience some inflation. You will lose more purchasing power with rates going up (which usually occurs when inflation comes around) than with prices going up.
I have not had any recent issues with appraisals. I just had a buyer increase the offer price by more than $100k over the list price and the appraisal came in. Who knows what the future will hold, but overall it is still a good time to purchase.