Interest rates play a big role in whether people decide to buy or sell a house—and they have a big effect on home prices, too. If you're thinking about selling a house in Atlanta, you need to understand how these rates work and how they may affect your home sale.
In simple terms, interest rates are the cost of borrowing money. They go up and down based on decisions made by the Federal Reserve and the state of the economy. When rates are low, it’s cheaper to take out a mortgage. When rates are high, borrowing gets more expensive, and that changes how buyers and sellers behave.
How do Atlanta housing market interest rates affect local real estate and what should you keep in mind when selling a house?
What are interest rates and why do they matter?
When someone takes out a home loan, they pay interest on it. That’s the extra money paid to the lender for letting them borrow the funds. The actual rate you get for your mortgage depends on several things, including:
- The Federal Reserve’s interest rate (also called the Fed rate)
- Inflation
- How strong the economy is
Lenders usually charge a bit more than the Fed rate to cover their costs and risks, which is often around 3%. This difference is known as a spread. Mortgage rates aren’t exactly the same as the Fed rate—but they often move in the same direction. When the Fed rate goes up, mortgage rates usually go up as well. When the Fed lowers rates, mortgage rates often go down, too. That’s why changes in interest rates can really shift the impact of interest rates on Atlanta real estate and change what someone can afford.
How interest rates affect home prices in Atlanta
There’s a direct link between interest rates and home prices. Here's how it works:
- Lower interest rates make mortgages more affordable, which usually increases demand for homes. When more people want to buy, prices tend to rise.
- Higher interest rates mean higher monthly payments, which can scare off buyers and cause prices to level out or drop.
The mortgage rates effect on home prices in Atlanta is clear: as borrowing gets more expensive, fewer buyers can jump into the market, and that can drive home values down or cause houses to sit on the market longer.
What this means for Atlanta home buyers
For home buyers, interest rate changes and Atlanta home-buying go hand in hand. Higher rates mean buyers either need to budget more for their monthly mortgage payment or look for a less expensive house. In some cases, higher rates can even make it harder to get approved for a loan. High interest rates can lead to a buyer’s market, where there are fewer buyers than sellers due to increased cost. This can lead to sellers having to lower their prices to adjust for demand.
What this means for Atlanta home sellers
Home sellers are impacted by interest rates, too. When rates rise:
- There are fewer buyers in the market.
- It can take longer to sell your house.
- You might have to reduce your asking price.
But when rates drop:
- More buyers can afford a mortgage.
- Homes often sell faster.
- You may even get multiple offers.
If you’re thinking about selling a house, pay attention to the housing market interest rates in Atlanta. You’ll want to time your sale to take advantage of low-rate periods when demand is higher.
Where are interest rates going next?
If rates go down, it could lead to more competition, faster home sales, and possibly rising prices. On the flip side, if rates stay high, the market can be expected to move slowly.
No matter what happens, don’t wait too long to list if rates start falling—more buyers will be looking, and you’ll have the advantage.
Understanding the connection between Atlanta housing affordability and interest rates can help you make smart choices when you’re buying or selling.
Make smart moves in any market.
Interest rates affect every part of the real estate process, from what buyers can afford to how long a property sits on the market. If you’re in Atlanta, staying aware of rate changes is one of the best things you can do to prepare for your next move.
And if your property needs repairs or you don’t want to wait for the perfect moment to list it, selling to a home buyer you can trust, like HomeVestors®, can be a smart move. We buy houses “as is,” so you don’t have to fix anything or worry about a buyer not getting approved for a loan.
If you’re looking for a quick, hassle-free way to sell your home no matter what’s happening with rates, reach out to HomeVestors. We’re local property specialists with over 29 years of experience buying houses in almost any condition, all across the Atlanta area and nationwide. With our 3-step home-buying process, we make it easy to sell your house without hassles. When you sell to us, we can take you from consultation to closing fast, sometimes in as little as 3 weeks. We pay all typical closing costs, and we don’t charge commissions or hidden fees.†
Tired of waiting on the perfect market conditions to sell your house? Time to take control of your home sale with HomeVestors in Atlanta. Contact us today for a free consultation.
This blog is for informational purposes only and should not be considered legal advice.
