Fortune Favors the Prepared

Should you wait for interest rates to drop?

There is a rule of thumb that a 1% drop in interest rates leads to a 10% increase in purchasing power or affordability.

Yes, we are still in a market with relatively high interest rates. But did you know that interest rates have dropped about 1% since April 2024? Which means 10% more affordability.  It’s even about 1.5% less than the highs of the past 12 months.

Lower interest rates also mean that other people can afford more, and we’re noticing the uptick in calls on our listed properties.

Bottom line is that, if interest rates come down, prices tend to go up, which is the other side of the affordability equation. So, if you want to buy, we recommend that you get ready by speaking with a good lender (we’ll be glad to recommend some of our favorites) and watch with us for houses that would work for you.

And if you’re looking to sell, now is a great time to get on the market as buyers see their buying power increase through lower interest rates.

Whatever your real estate needs, we’d love to be of service to you.

Lunch & Learn: Real Estate Investing

Come join us for lunch and a presentation on real estate investing, followed up by discussion time and mingling, from 12 noon to 1pm on September 28, 2024, a Saturday. Here are the location details:

Keller Williams Western Realty

2211 Rimland Dr., Ste. 106

Bellingham, WA 98226

See you there!

The Ramsey Team exists to help people build wealth through real estate.

“If you want to build wealth in America, you need to own part of America.”

~Lawrence Yun, Chief Economist for the National Association of Realtors

John for the Ramsey Team

360.499.2221

johnramsey@kw.com