Should you be worried about rising interest rates? Let me put your mind at ease.
Should you be worried about the recent rise in interest rates? Let me assure you, things are much better than they appear.
Yes, rates rose from a low of 3.44% in August to 4.12% for a 30-year fixed rate mortgage. If you took out a 30-year mortgage on a $250,000 house, your payment would be almost $100 a month higher, totaling $35,000 more in interest over the life of the loan. This has people nervous that the market may slow down.
However, the current rise in rates is unlikely to affect the market. Interest rates last year were at an all-time low, and historically, rates have been much, much higher. Just 10 years ago, rates were at 6.34%, and for much of the 1990s, rates hovered around 7% to 10% for a 30-year fixed mortgage. In the 1980s when my parents bought a home, they paid a 16% interest rate for their mortgage!
In a historical context, rates have been much higher than they are right now.
In this historical context, you can see that rates have never been better than they are right now. So what does this mean for you? If you're thinking about buying a home, this is an amazing opportunity to find a great home and some great value.
If you're looking to sell your house, you're in great position to get top dollar. Just last December, we saw sales drop, but not because of interest rates, but because of the lack of inventory. If you're selling your house, it all comes down to supply and demand: there are a lot of people looking to buy a home in the Brainerd Lakes area, but not a lot of inventory available for them.
If you have any questions for me, you'd like to know what your home is worth in the current market, or you're thinking about buying a home, give me a call or send me an email today. I'd be happy to help!
No comments :
Post a Comment