Rising interest rates can be a good thing for several different reasons.
- Right now people have a false sense of a high mortgage rate. Just a few short years ago 6% was a good rate. We have been spoiled with historically low rates that could not last forever. Even though rates are rising, they are still low.
- If you are a seller, the rising rates and the rising home prices are getting buyers to finally start buying. Buyers realize that the time of the great deal is over and they need to buy now to still get a good deal.
- The loan back up will start ending. So many people were refinancing and that combined with new mortgages had the loan industry all backed up. The rising rates will keep most from refinancing allowing more time for new purchase mortgages.
- Rising rates are a sign that the economy is improving and is also a good sign then for the housing market.