Rising Rates While You’re Under Contract

By Greg Smith

BoulderHomeSource represents the region’s finest properties with exceptional skill, using the most innovative technologies currently available. BoulderHomeSource offers ultimate privacy, security, speed, and efficiency. The team’s years of full-time experience have given them a clear understanding of the mindset of home buyers and sellers and a thorough understanding of the regional marketplace.

Are you in the market to buy a house this year but feeling uncertain about how fluctuating interest rates could impact your purchase? I’m here to provide some clarity on what happens when interest rates change while you’re under contract.

In today’s dynamic market, interest rates can shift rapidly. What’s true today may not hold tomorrow, and this uncertainty can make navigating the buying process seem daunting. However, there are strategies to mitigate the effects of interest rate fluctuations while you’re under contract.

In a rising interest rate market like the one we’re experiencing now, it’s crucial to act swiftly and lock in your rate early in the process. Doing so serves two purposes: first, it shields you from potential rate increases; second, it positions you to take advantage of any creative solutions that may arise if rates happen to drop.

Partnering with a reputable lender is paramount in this process. A good lender will offer what’s known as a “float down rate,” which allows you to capitalize on lower interest rates if they become available before closing. By securing a good rate early on and leveraging the tools provided by your lender, you can minimize the risk of locking in a less favorable rate.

It’s important to recognize that predicting future interest rates is inherently uncertain. However, by taking proactive steps to secure your rate and understanding the options available to you, you can make informed decisions throughout the buying journey.

When evaluating mortgage options, consider factors such as down payment requirements, monthly payments, and overall affordability. Ensuring that you’re comfortable with both the interest rate and the financial implications of homeownership is essential in making a sound investment.

If you find yourself feeling overwhelmed by the prospect of navigating a variable interest rate market, don’t hesitate to reach out for guidance. Our team is here to help you explore strategies and solutions that will streamline your purchase and provide peace of mind.