Interest Rate is 7.2%

Here is what happens when interest rates spike - buyers pause.

Most buyers see this as a bad thing. Obviously - because the monthly payment for the same property rises. But here are a couple of my clients' stories.

One of my clients was looking in Danville. It was super competitive, we wrote seven offers and every property went for more than my client's budget. Then, the stock market dipped. Everyone got scared. The listing agent for the last property we wrote an offer on originally countered us at $100K over the asking price. Then, one week later, they came back and said they’re ready to accept my clients’ original offer. So we got the home and didn't overpay.

The second client bought in a market with a high interest rate (at that time, it was 6.3%). Six months later, they refinanced for free at 5.3% when rates were at their lowest point.

The moral of the story: when the market is uncertain, buyers pause, and only those with strategies and knowledge get the best deals.