Seller Situations

What Rising Interest Rates Really Means For Us

Jason & Jacee

The Federal Reserve (The Fed) is expected to raise interest rates. All around the Wall Street Journal, CNN, CNBC, NY Times, etc, there are articles marketed to scare you. With all the media swarming us, it makes it hard to understand how this actually impacts US.

The Basics

I’m going to try and sum it up quickly, so lets get past a couple of basics first.

When the housing market crashed 10 years ago, it was because money was too easy to borrow. Basically people had mortgages when they shouldn’t have been able to. Now, money is very easy to get again… hence we have very, very low interest rates and home prices are on the rise again.

BUT, don’t be too concerned because 2008 was about more than interest rates.

So This Means?…

The Federal Reserve is now going to raise interest rates to make money a little less easy to borrow.

  • Rates Up- Monthly Payments Higher- Less People Can Afford A Mortgage
  • Rates Down- Monthly Payments Lower- More People Can Afford A Mortgage

The monthly payments on your new home at the same price will go up. So if you’re in the market for a new home, you may just want to lock in your interest rate with the bank now. If you need to refinance, you may want to do it now. If you’re selling your home, it may take slightly longer to sell.

What About Home Prices?

Home prices shouldn’t continue to rise like they have been. This means, they will likely rise, but NOT AS FAST. This doesn’t mean they will suddenly fall. The Fed’s interest increase is to help prevent another crash, not create one, so don’t worry.


Don’t panic over some news article about interest rates. Lock in your interest rates sooner than later if you’re buying or refinancing. Be prepared for your house to sit on the market a few extra days if you’re selling.