Interest rates are on the rise. What will that mean for those looking to buy a home this year?
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If you haven’t heard, interest rates have been on the rise, increasing steadily since the beginning of this year. What does that mean for you?
Today, I want to share some real numbers with you so that you can have an idea of that would cost per month in terms of your mortgage.
Since the beginning of this year, rates have risen about half a percent. The Fed is easing the purchasing of treasury bonds and mortgage-backed bonds, and we believe that this trend is going to continue, possibly rising up to around 5% or more.
If you haven’t jumped on the bandwagon to buy but you’ve been thinking about it, I strongly recommend jumping now, while we’re still seeing record-low interest rates around 4%. If you bought a $200,000 home today versus the beginning of the year, it’s a $54 per month increase. If you bought a $350,000 home today as opposed to the beginning of the year, it’s a $93 difference. For a $750,000 home, the difference would be $200 per month.
The fact of the matter is we know rates are going to keep rising even more than 0.5%. If they increase another full percent, you can only imagine how much more that would add to your mortgage. Right now is definitely the time to buy.
Finally, did you know? Zillow recently released a report in which they analyzed homes located with a quarter of a mile to a Starbucks from 1997 to 2014. Those homes increased in value by 96%, an astoundingly high number compared to areas outside that range.
If you have any questions or have a topic you’d like me to cover, feel free to reach out to me.