The Counterintuitive Wisdom of Buying a House When Interest Rates Are High

How Rates Impact the Housing Market

In general, when interest rates are higher or increasing, the housing market slows down. When interest rates are going up, the cost of owning a home becomes more expensive due to the higher interest rate, which reduces demand. This reduction in demand then results in a drop in home prices.

When the Fed increases rates to slow down the economy, particularly in times of inflation, the above goal is what it's looking for; a reduction in consumer spending that results in a drop in prices.

Conversely, when interest rates drop, the cost of buying a house becomes cheaper, which increases the demand for housing. Lower interest rates go hand in hand with a bustling housing market. This increase in demand then slowly increases home prices.

Why Buying is Still Better Than Renting?

As a renter, you don't build equity over the long term and if you leave, you don't get to take any profits with you. Owning a home can be empowering and emotionally rewarding. The money you spend on your mortgage every month and improving your home yields a long-term investment benefit for you instead of a landlord.

Great News for First-Time Homebuyers!

In the world of real estate, conventional wisdom has long held that the best time to buy a house is when interest rates are low. It's an understandable assumption, given the seemingly logical relationship between interest rates and housing prices. When interest rates rise, it becomes more expensive to borrow money for a mortgage, and this, in turn, should reduce the demand for housing and cause home prices to fall. Conversely, when interest rates drop, the cost of buying a house becomes cheaper, which should stimulate demand and drive home prices up.

And here's some great news for first-time homebuyers: MKG Enterprises Corp is excited to introduce our new down payment assistance programs that come with NO income limits! Eligibility is open to U.S. citizens, permanent resident aliens, non-permanent resident aliens, and even DACA recipients. Plus, we've got you covered with various eligible property types: 1-unit residences, 2-4 unit properties, FHA approved Condos, and both single-wide and double-wide manufactured homes.

With a minimum credit score requirement of just 580, you're closer to homeownership than you think. And guess what? This program isn't limited to first-time homebuyers! You can apply even if you own other properties.

To apply for these amazing programs, use our easy and secure online loan application https://mkgenterprisescorp.com

Please note that specific loan program availability and requirements may vary, so it's best to get in touch with your mortgage advisor for more information. Don't miss out on this opportunity to own your dream home, even when interest rates are high!