Why Are Interest Rates Rising and Affecting Affordability?
In this episode, we talk about how volatile interest rates are and what you can do to avoid the heartbreak of not qualifying for the home of your dreams. 80% of Americans 75% of their net wealth is in their singular home. What about the number of people in the 80% that don't have a home? They just lost 75% of their opportunity to build their net wealth. They are relying on their 401K, basic savings.
What if the jump in interest rates put you at the 50% balance to debt ratio. Your options thinned out quickly. You are now high risk, with less available for a percentage down, so the interest rates are higher. You need to be strategic and bring all the options out to explore them so you can get the house of your dreams.
The situation with Russia and Ukraine is affecting the markets and the interest rates. You need to have current information and not rely on an older lender letter. You will be heartbroken when you no longer qualify for the home you are searching for. Make sure your interest rate is secure.
Interest rates are going up with the Fed too. Rates jumped up last week to over 7%.
It's a fair question... why are interest rates rising? A combination of international politics putting a strain on inflation and large flights of safety to sell stocks, it's causing turbulence on our market. When rates jump and move around so quickly, it affects affordability. Knowing the affects on conforming, high balance and jumbo loans is important so you can advise your clients on their next move! Listen to this episode for helpful tactics and information from Nicole Rueth.
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