If you’ve been keeping tabs on the real estate market since 2020, you understand how crazy things have been. Is now a good time to buy a home, or is it better to wait? With all the uncertainty in the world, many potential buyers have been reaching out to us with questions like this lately. Home experts say that you should make the move as soon as possible.
The Federal Reserve has said that there will be three interest rate hikes this year, leaving rates at around 4% by the end of 2022. So what does that mean for you as you consider buying or selling a home?
Suppose you had a $375,000 30-year mortgage. A rate increase of 1% means that your monthly payment would increase by $209 per month. After seven years, that’s an additional $17,000. With the market appreciating so rapidly over the last 12 months, a home that sold at his time last year for $300,000 would now most likely sell for $350,000.
You currently have more buying power than you will a year from now. If you’re thinking about buying a home, don’t wait—interest rates are going to rise throughout the year, but they’re still relatively low at present. Make your purchase now before your buying power is reduced; doing so will save you money in the long run.
If you have any questions about rising interest rates or home values, or if you’re looking to buy or sell, give us a call or send an email. We’d love to help you.
