David Greene (BiggerPockets) and Christian Bachelder from www.the1brokerage.com discuss the impacts of the recent increases in mortgage rates

- Interests rates are up +150 to 200bps in the last 3 months
- However, no decrease in number of persons pre-approved for credit and competition among buyers is still fierce
- The real estate market has more a supply issue rather than an interest rate concern (besides, rates should continue to go up this year as per the Federal Reserve’s agenda to fight inflation).
- Institutional investors “smart money” is still buying real estate at the moment to capture cash flows and appreciation
- Pro tips provided by Christian Bachelder :
- Get pre-approved first as rates are moving up quickly, it is important to figure your monthly payment. It will also provide confidence for sellers with multiple offers
- Build a relation with a credit broker or a loan officer rather than shopping for rates. A broker that knows you well will be able to provide the best advice on the types of loans that will fit your strategy over time, especially when you grow your portfolio.