Blog 20117If a real estate buy is in your near future, rising interest rates are bad news. Or so you thought. Rising interest rates are not necessarily evil, however.

This post explains how an increase in rates won’t necessarily thwart your home-buying ambitions, and how it might even help.

1) Rising interest rates signal economic improvement

The Fed raises short-term interest rates when inflation is a concern. Inflation is not normally an issue when the economy is uncertain or in poor condition.

An improving economy means more consumer activity. In fact, two-thirds of the US economy is based on consumer spending. More spending equals more jobs, higher wages, and competition for employees.

2) Investments pay off

Right now, stock market investors are earning excellent returns. The Dow Jones Industrial Average set records this week, topping 20,000 on January 25, 2017.

If your down payment funds are invested in stocks or mutual funds, you could hit your savings goal sooner.

You could also find yourself earning more as competition for employees heats up.

Reasons 3 – 5