How Rising Interests Rates Can Be Good
While rising interest rates can be a point of contention for many people right now, there are some indicators that rising interest rates can be a good thing. We’re going to highlight some of those today to ease your nerves, so read on.
If you’ve focused your investments on saving, you’ve likely experienced a drought of not accruing interest as of late. Increasing interest rates change the landscape with cash in the bank. You’ll see your savings starting to be more successful with higher rates. Additionally, with rising rates comes a stronger dollar. This inherently boosts purchasing power compared to other currencies. Last but not least, and most pertaining to real estate, rising rates gets some buyers and sellers off the fence. For instance, if you’re set on a home with a little competition, rising rates may push your competitor over the fence. This could, in turn, encourage the seller to accept your offered price.
Rates have increased due to a booming economy and high employment rate, so don’t allow yourself to feel discouraged as these are good things. Afterall, they are not nearly as bad as we have seen in the past