Rising Rates: What It Means for Buyers! #shorts #realestate

Name: Rising Rates: What It Means for Buyers! #shorts #realestate
Uploaded: 2025-04-15T18:04:19+00:00
Duration: 33 s
Channel: Nathan Payne
Description: In this short video, Nathan Payne explains how the low interest rates during the early COVID period (around 2.7‑3%) allowed many buyers to afford homes…

15 Apr 2025 · 1 min

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In this short video, Nathan Payne explains how the low interest rates during the early COVID period (around 2.7‑3%) allowed many buyers to afford homes priced around $600,000, because the mortgage payment was roughly half of what it would be today. He notes that rates have now roughly doubled, which has priced many of those buyers out of that price range, reducing the amount of home they can afford. Despite this, Payne argues that the need for housing remains unchanged and that buyers who have already decided to purchase will still go ahead with their transactions, indicating that higher rates will not halt home buying activity entirely.

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Maybe 2 years ago when COVID first started and interest rates were at 2.7, you know, 3%, someone could afford a half a million, a $600,000 house, 'cause the payment was, you know, half of what it is now. Now that it's doubled, those people are kind of being priced out of being able to purchase those homes in that price range. So what does the interest rate rising mean? It just means people can afford less of a home. Does that mean buyers are gonna stop buying? People still need a place to live. And I don't think anyone's gonna stop buying. If someone's made a decision to purchase a home right now, they're gonna buy a home. That's just how it is.