Nobu Hata is actively in the market to buy a home, and he knows interest rates are going up, but it is still “a little bit of gut check when it happens.” The Chicago resident dubs it a “personal hurdle” for some homebuyers. (Although Hata works for the National Association of Realtors, this is not the official company line.)
- Historically, the psychological effect of rising rates seems to cut two ways.
- One way is prompting buyers to move quickly before rates rise even more.
- Alternatively, higher rates entice cautious buyers, who are already cutting it close with their personal finances, to hold off buying a house.