What is all this talk about interest rates about?! Everyone is concerned about them rising, waiting for them to go down. What does that really mean? How does that affect me?
The interest rate is the cost of borrowing money or a loan. This is typically expressed in an annual percentage, for example today’s interest rate is 6.75% on a 30 year fixed loan. This affects our home owners because it determines their monthly payment.
This affects everyone else because when interest rates increase, the economy shifts. People may be less likely to borrow money or make big purchases, where as if the interest rate is lower people may be more likely to spend. This affects our bankers and entrepreneurs as well. So next time you “freak out about the interest rates!” Know that you aren’t alone in your concerns and stresses. The best way to handle these concerns is to do some research, speak to a lender you can trust, and do what is best for YOU!
We have these conversations daily with our clients and as real estate agents we not only help others find homes, but we educate our clients to give them the best possible knowledge to make the right choice for them and feel confident doing so.