Many people are wondering how rising interest rates will impact the real estate market. They’re concerned that there will be a slow down in the market or that they won’t be able to afford to purchase a property.

According to the experts, there will be a certain level of uncertainty, but there are economic indicators that should ease the strain of rising interest rates.

The US has a resilient economy and the potential for strong job growth. Those two issues alone could ease the impact of increasing interest rates on the housing market.

Chief Economist for the National Association of REALTORS® (NAR), Lawrence Yun, also speaks about the changes that take place with the new administration.

If Dodd-Frank rules are rolled back, it will be easier to get a loan, which would increase the pool of Buyers in the market who qualify for a loan.

Although interest rates are increasing, they are still at a historical low. Some project the rate could increase to 4.4% or higher for a 30 year fixed mortgage.  

Some predict even higher.

Bottom line, if you’re a first time home buyer or want to trade up in real estate, get pre-approved for a loan and start looking now for a real estate professional to help you with the search. The longer you wait, the higher the interest rate. Don’t give up on your dream home!