There has been a lot of uncertainty lately in the market when it comes to interest rates. In light of this, I have some big news to share with you today. Recently, our mortgage pro sent me a graph that reveals some information about rates. At the end of the graph (in the video above) you will see it spike down. This signifies a quick rise in interest rates. In fact, they went from around 3% to around 4% in just a week. So the answer is yes, rates have gone up, but how much more will they rise?
With rates up, homes are more expensive than they were for buyers with financing from just a week ago. They will probably shoot up a little bit more this spring. For sellers, this doesn’t mean much. Housing prices won’t really be affected, and rates in the 4% range are still historically low. We likely won’t see a downward trend in homes sales until we get into the 6% range.
However, if you’re a buyer, a 1% rise in interest rates equals a 10% higher monthly mortgage payment for the same home. If you can lock in a low rate now, you should. You will be thankful later when you save tens of thousands of dollars on the life of your loan.
If you have any questions for me about interest rates or anything else related to real estate, give me a call or send me an email. I look forward to hearing from you soon.
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