Hello from 4 Walls That Fit Real Estate, your trusted real estate professionals.
More than ever lately, we wake up to a new article covering the same topic of rising interest rates.
The last few years the market has been a glorious place for anyone borrowing money to buy a home, even those who have the expendable cash to make a purchase have been choosing to borrow because interest rates have been incredibly low.
Well, all of that is on track to change in the beginning of 2022. The powers that be, AKA the Federal Reserve... is calling for an interest rate hike in the Spring of 2022. Even if this forecast is a little premature and it doesn’t land until the 2nd or 3rd quarter, it’s best to know where you stand financially and act sooner rather than later.
Imagine interest rates for a loan increase 1%, not a huge attention grabber unless you have a clear understanding of what that would mean to your pocket.
Essentially a 1% increase in interest equates to 10-12% fluctuation in cost. So, let’s say you are qualified to purchase a $400,000 home at current interest rates. Just a 1% rise decreases your qualification to approximately $355,000 - $360,000. As of yet there are no indicators that home prices will be decreasing at the same rate at least our crystal ball hasn’t said anything.
If buying a home is still something you are considering for next year. We do not want you to be affected by future rates and possibly miss current advantages by waiting too long.
Please read this quick article focusing on “Raising Rates and Homebuyers” and let’s talk!
Reach out to us anytime!
Kim Dozier and Team
