With interest rates on home loans soaring over 6%, is now a good time to buy a house? The pros and cons of buying a house with increasing interest rates.
Let’s start with the pros. With a higher interest rate, several buyers will turn away from buying a house which as a result will drive the price down. Less offers on the table translates to sellers more willing to help with closing costs and price reductions.
Now, the big elephant in the room; higher interest rate mean higher monthly payments, typically meaning less of a house people may be willing to purchase.