Whiteboard Topics: How Do Interest Rates Influence Lake Real Estate?

High-interest rates can startle the average buyer, but rest assured, the lake real estate market plays by a different set of rules. Lake Homes Realty’s CEO, Glenn Phillips, shares why lake home buyers shouldn’t be concerned about the rise in interest rates.

  1. Limited Mortgages: Most lake home transactions are done in cash, elevating the need for mortgages. Because lake homes are discretionary purchases those who opt into a mortgage art usually in a higher financial bracket.
    1. Existing Lender Relationships
    2. Rural vs. Suburban 
  2. Preferred Credit: Most lake home buyers have a solid credit standing, which puts them in a better position than other borrowers.
  3. Investment Hedge: During inflation, investing in real estate is a great financial move. The average lake home buyer will see this as a smart place to put their capital.
  4. Mindset: While the increase in interest rates doesn’t have a significant effect on lake home buyers, it could indirectly affect their behavior. 

Don’t let increasing interest rates stop you from finding your dream lake home. The lake real estate market will have no problem thriving despite inflation!

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