Should you be concerned about the impact rising interest rates will have on the current real estate market?
As you probably know, over the last couple of months, interest rates have been on the rise. Should you worry about these increasing rates?
Over the past couple of months, fixed-rate mortgages have gone up just over 0.5%. Rates can be as high as 4.25% and as low as 3.5%.
In real terms, this rise in rates means that if you took out a 30-year mortgage on a $250,000 home, you would pay as much as $100 more each month and pay an additional $35,000 over the life of the mortgage. That is a sizable chunk, so some people are nervous that increasing rates will slow down the market.
However, the market is not about to slow down anytime soon. Why? Historically speaking, these rates are still incredibly low. Back in the 90s, rates were as high as 10%. In the 80s, interest rates were at 16%! As you can see, these 4.25% rates are still incredibly low.
What does that mean for you?
As a buyer, these low rates create a great opportunity for you to buy an amazing home, which is way better than renting.
If you want to sell your home, you are in a great position to do so quickly and get top dollar.
If you have any other questions about interest rates and our current market, give me a call. I would be happy to help you!