Interest rates are rising
Now is the time to buy or sell your home.
Source: Freddie Mac & www.longforecast.com
Interests rate are up over 100 basis points since July 2016 (30- year mortgage rates are 4.52% in September 2018 vs. 3.44% in July 2016). More significantly, they are expected to almost rise another 200 basis points by October 2020 (to 6.32%).
What does this mean for you? Mortgage costs are rising for buyers. Higher mortgage costs mean lower purchasing power. And lower purchasing power creates downward pressure on home prices because buyers can no longer afford the home they want. For example, the monthly payment on a 30-year mortgage for a $1,000,000 loan is forecasted to be $1,628 per month higher in October 2020 vs. July 2016!
Likewise, if you are planning to move into a new house and need a mortgage, you will face the same higher costs when you buy your new home. Selling your current home and locking in a lower rate on your new home may save your thousands of dollars per month.
You can lock in rates now by working with a quality mortgage lender. Our team offers a unique program that includes a 90 day rate lock for free. Click here learn more about our team’s unique financing options.
If you would like to learn more about market trends impacting the value of your home, feel free to schedule a consultation with us at a time convenient for you, or simply fill out the form below and we will contact you as soon as possible.