Mortgage Rates are Rising
What does this mean for you as home buyers or home sellers? Lets focus on that today. Freddie Mac released their latest data on the average interest rate for a 30 year fixed mortgage. It is now at 4.3% versus 3.96% a year ago. I foudn the following example from this article to more clearly illustrate.
If you did not buy a $500,000 home back in July when interest rates were at 3.41% you would now be paying $255 more per month for the exact same house. The cost of money has risen and it will affect the real estate market significantly unless you are paying cash.
What Is Your Real Estate Goal for 2017?
What are you trying to accomplish? If you are looking to buy a new home in the near future realize that your buying power is diminishing as interest rates rise. If you want to sell than you must understand there will be less buyers available since the cost of lending has increased. If you need some help building a personalized plan of action do not hesitate to contact me.