7% Interest Rates and Inflation Concerns Keeping You From Making A Move?

by Pamela Manwaring

It’s completely understandable to feel hesitant about jumping into the real estate market when headlines are buzzing with talk of high interest rates and inflation. You’re not alone—many buyers and sellers are pausing to reconsider their next move. But is waiting always the best strategy?

Let’s break down what’s really happening and how you can make a smart decision, even in a challenging market.

Interest Rates: The New Normal?

Mortgage rates have climbed from the historic lows we saw just a couple of years ago. While this means higher monthly payments for buyers, it’s important to remember that rates are still moderate compared to the highs of the 1980s and 1990s. If you’re waiting for rates to drop back to pandemic levels, you might be waiting a long time.

Inflation: What Does It Mean for Real Estate?

Inflation pushes up the cost of everything, from groceries to gas—and yes, to housing. But real estate has historically been one of the best hedges against inflation. As prices rise, so does the value of your property, helping preserve your wealth over time.

Should You Wait?

Buyers: Waiting could mean missing out on a home that fits your needs, especially if prices continue to rise. Plus, you can always refinance if rates drop in the future.

Sellers: There’s still strong demand for homes, and inventory remains tight in many areas. Listing now could help you stand out before more homes hit the market.

Real-Life Example

Consider Sarah and Mike, a young couple who bought their first home last year when rates were already climbing. They locked in a rate that felt high at the time, but now they’re grateful—they started building equity and have the option to refinance if rates drop. Meanwhile, their home’s value has increased, giving them a financial cushion.

Making the Right Move

The best time to buy or sell is when it’s right for your personal situation—not just the market. If you’re ready to make a move, don’t let fear hold you back. With the right strategy and guidance, you can navigate today’s market with confidence.

Curious about your options? Let’s chat about your goals and how you can make the most of the current market conditions!