If you’re thinking about buying a home, now is your chance. Why’s that?
Well, interest rates have started to creep up. Have you noticed that just four months ago, interest rates were almost 0.75% lower?
So what do rising rates mean for you?
Here’s one thing to keep in mind: Every time interest rates increase by 1%, your home buying power decreases by 10%. If interest rates go up by 1%, you’d have to pay 10% less on the purchase price in order to maintain the same monthly payment.
If you haven’t found a home that you like at the upper price points, what’s going to happen when you have to start shopping 10% below the values that you’ve been looking at today?
I want to encourage you to take advantage of the market that we’re in, especially with interest rates behaving as they are. If we continue to see this trend, by the end of the year, we may see another 0.5% rise in interest rates. That will certainly impact your purchasing power.
If you have any more questions about our market or you want to start your home search now, give me a call or shoot me an email. I’d be glad to help you.