What Do Rising Interest Rates Mean for You?
Today, we’ll talk about what you need to know regarding rising interest rates. Rates are projected to rise starting in the fourth quarter of this year. By December 2018, rates will be at a projected 4.8%.
While a one percent raise might not seem like much, it can significantly affect both buyers and sellers. For example, let’s say you’re looking to buy a $200,000 home while rates are at 5%. If rates go up to 6%, you could only afford a $180,000 home. A one percent rise in rates is equivalent to 10% of home value.
Basically, while rates are low, more people can afford to buy your home. Low interest rates make it easier for sellers to sell their homes, and buyers will get lower monthly payments. We advise that you take advantage of these low rates now, as rates will continue to rise for the next few years. They will eventually come back down, but probably not for a few years.
If you have any questions, please give us a call or send us an email. We’d be happy to help you!
RE/MAX Estate Properties