Many folks have asked what effect the rising interest rates are going to have on the real estate market. While there are a lot of possibilities, one thing for certain is that rising interest rates can make quite a bit of difference in a buyer's purchasing power. We are hearing a lot of talk that interest rates are likely to be at 6% (or higher!) by the end of the year. While still low in an historical context, it does make a difference in buyers' monthly payments.
I ran some quick numbers on my mortgage app to show a comparison of a $450k house at 4.5% interest — about where they are as of the writing of this article — vs at 6% interest. See below:
It's a $376 per month difference in payment! If one is renting, it's also good to keep in mind the amount of money you'll spend on rent during the time you're waiting. If it's $2k per month for 12 months, that's an additional $48,000 that is paying your landlord's mortgage, not yours.
Again, we completely understand if you want to wait. We are here to serve you! We just want to make sure you have all the right information so you're making an informed decision.
I ran some quick numbers on my mortgage app to show a comparison of a $450k house at 4.5% interest — about where they are as of the writing of this article — vs at 6% interest. See below:
It's a $376 per month difference in payment! If one is renting, it's also good to keep in mind the amount of money you'll spend on rent during the time you're waiting. If it's $2k per month for 12 months, that's an additional $48,000 that is paying your landlord's mortgage, not yours.
Again, we completely understand if you want to wait. We are here to serve you! We just want to make sure you have all the right information so you're making an informed decision.
Great Affordable Updates and Fixes — Faucets
