Friday, August 12, 2022 / by Ameil Gill
UPDATE: On Mortgage Rate
Let's talk about interest rates (since it's all over the news).
After years of staying at record lows, mortgage rates have increased from 3% to over 6% since early 2022, and took another steep climb last week. Economists are expecting them to increase even further by the end of this year.. for the first time in over 14 years, interest rates are now above 6%.
What does that mean for buyers and sellers?
As interest rates continue to increase, your purchasing power decreases. On a $300,000 home, this most recent increase in rates will change your monthly payment by about $150/month. That's about $30,000 in buying power that you just lost. So if you've been on the fence about buying a home, it may be smart to act sooner rather than later.
With rates increasing, some buyers will likely back out of the market. This means home values will probably start to stabilize even further. If you've been thinking about selling, don't wait for the spring market. Let's chat now about a game plan to get you the most money possible.
Have questions about the current market or interest rates? Let's connect, I would love to help you understand what this could mean for you in your home buying or selling journey!