What does the recent rise in interest rates mean for your situation?
What does the rise in interest rates mean for you? Today we’ll separate the facts from the fiction about our current real estate market. The fact is that interest rates are going to rise this year. The big fiction is that people should wait until prices drop to make a move. Although prices and demand are both high, we’ll explain why you shouldn’t wait to make a move.
Rising interest rates will have a greater impact on your affordability than if you choose to wait for prices to come down. Let’s compare a $350,000 home at 3% interest versus a $320,000 home at 5% interest. Your monthly payment is $284 more expensive if you were to wait for prices to come down and risk rates going up. Throughout that mortgage, you’ll actually pay over $102,000 more by waiting.
Now is the time to make a move while the market is hot. We want to make sure that you can move with confidence and get the most for your money. If you have any questions, don’t hesitate to reach out to us. We look forward to hearing from you.