Why higher mortgage rates still shouldn’t dissuade buyers from looking for a home

Rates have climbed, but buyers still have plenty of incentive to keep looking

On this latest episode of "You Have Real Estate with Justin Clark," Orlando-area realtors Greg Mann and Vivian Lehman offer insight on today's real estate market.

There is a lot of talk in the real estate industry about higher mortgage rates, and for good reason.

Rates have jumped from just under 3% at this time last year to more than 5% at the moment, adding yet another wrinkle to a predominantly seller’s market.

But on the latest installment of “You Have Real Estate” with Justin Clark, Orlando-area Realtors Greg Mann and Victoria Lehman offer reasons why people should still be motivated to look for a home.

1. It’s still better to buy than rent.

Even though mortgage rates are climbing, so are rental prices. Given that, it’s still better to own a home if possible and gain equity, rather than paying a landlord.

“Buying is always the best bet -- no doubt about it,” Mann said.

2. Rates could rise further.

As much as a rate over 5% seems high now, those rates could increase even more going forward.

“The rates are still good,” Lehman said. “They might go up a little bit more, so take advantage of it now.”

3. You can rent your home out.

For those who are able, trying to buy a home means the potential for extra income through renting that residence out.

Given the demand for rentals, it shouldn’t be difficult to find tenants.

Of course, that means making sure that you want to maintain a house, be a landlord over a tenant, and that the money gained through rent will make it a profitable arrangement.

“It’s more than just saying I want to rent a house out,” Mann said.

For more information, watch the video above.