With the improving economy, interest rates are on the rise.

With the improving economy, interest rates are on the rise.

Is there an upside to higher rates? Sure. The same economic changes that bring higher rates bring higher home values, too! Interest rates are a reflection of inflation expectations. Higher rates are required to earn a real rate of return over and above the pace of rising prices. Home values have traditionally been one of the best protections against rising costs. While the cost of financing one with current rates may be higher than in the past, the potential for appreciation in value may very well make up for that over the long run.

As well, locking in a fixed rate loan means that cost will never change and if rates fall again in the future, refinancing may be a way to reduce the interest expense.

Want to a get a jump on securing an affordable rate before they may rise further?

Reach out today at 860.426.2447 and we will be happy to help.