Today I’ll share the latest real estate news regarding the current state of interest rates. Stay tuned for the details.
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In case you’ve been living in an ivory tower and haven’t heard the news: Interest rates are back down to practically nothing.
I’ve seen rates as low as 2.875% or 3%. For clarity, a 3% interest rate on a $100,000 mortgage gives you a $450 principle and interest payment (not including taxes or insurance).
When interest rates were creeping up, some people were closing loans at 4.75% or 5%. Even though those are still low rates, it caused many to panic. That’s understandable because the difference between a 3% and 5% rate can make a world of difference in your monthly payments.
Here’s another way to put our current low, low rates into perspective: If a 3% interest rate on a $100,000 mortgage gives you a $450 principle and interest payment, a rise in the interest rate to 4% would increase your payment to about $500.
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With lower rates, your money will go further when you do buy a home, and it’s likely that rates will stay where they are for a while.
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With lower rates, your money will go further when you do buy a home, and it’s likely that rates will stay where they are for a while.
You might be wondering if now is the best time to buy a house. Well, don’t just buy a house because interest rates are currently low; an increase of 1% makes little difference. Just buy a house when your life circumstances change and you need to.
Still, it’s wise to keep an eye on interest rates. With lower rates, your money will go further when you do buy a home, and it’s likely that rates will stay where they are for a while.
It’s also a great time to sell, even though we’re moving into the latter part of the year. If buyers’ money will go further, that means you’ll have more people who are able and willing to purchase your house.
If you have any questions about the market, interest rates, or about buying/selling a house, don’t hesitate to reach out to me. I hope to hear from you soon!
Still, it’s wise to keep an eye on interest rates. With lower rates, your money will go further when you do buy a home, and it’s likely that rates will stay where they are for a while.
It’s also a great time to sell, even though we’re moving into the latter part of the year. If buyers’ money will go further, that means you’ll have more people who are able and willing to purchase your house.
If you have any questions about the market, interest rates, or about buying/selling a house, don’t hesitate to reach out to me. I hope to hear from you soon!
