Rising interest rates may be a point of contention for you right now, but there is some evidence that supports that rising interest rates can be a good thing. We’re highlighting some of those indicators today to ease your nerves, so read on.
If you’ve prioritized putting your investments towards a savings account, you’ve likely experienced a drought in accruing interest as of late. Increasing interest rates entirely change the landscape with cash in the bank. With higher rates, you’ll see your savings beginning to have more successes. Not only this, but with rising rates comes a stronger dollar. This inherently boosts purchasing power in comparison other currencies. Last but not least (and most pertaining to real estate), rising rates will subsequently nudge some buyers and sellers off the fence. For instance, if you’re in love with a home that has some competition, rising rates may push your competitor over the fence. In turn, this could encourage the seller to accept your offer.
Rates have largely increased due to the booming economy and high employment rate, so don’t feel discouraged as these are good things. After all, they are not nearly as bad as we’ve seen in the past, so don’t fret.