Money Monday...Concerned About Rising Interest Rates?

 

A few things to consider:

 

  • Rates are still historically low. The chart below from Freddie Mac shows the average 30 year interest rate was 6.04% as recently as November 20, 2008! 

  • Rates have not averaged below 6% the past four decades!  (please see Freddie Mac Chart from KCM below)

  • The amount of money borrowed, property taxes, and HOA typically have a much greater impact to monthly payment than a slight increase in mortgage interest.

 

Example:

 

$300,000 mortgage loan amount

30-year fixed mortgage

 

4.625% interest rate  -  $1,542 (monthly principal and interest payment)

5.000% interest rate  -  $1,610 (monthly principal and interest payment)

 

Payment Difference:  only $68 a month

  • The purchase market is healthy!  According to Tina Tamboer of the Cromford Report, prices are projected to continue to rise over the next 3 – 6 months. 

  • The Cromford Report also notes that buyers typically have the most “buying power” in the 4th quarter of the year.

  • Positive economic news continues to make headlines, including:

 

The Job Market, Consumer Confidence and Economic Outlook:

 

-          Job market:   NBC News on the Economy 

 

-          Consumer Confidence:  CNBC

 

-          Economic Outlook:  Washington Examiner

 

Freddie Mac Interest Rate Chart:

 

 

 

 

Share on Facebook
Share on Twitter
Please reload

Featured Posts

Asking Prices up 9% Over Last Year, but are Buyers Paying It...These Homes Have Appreciated the Most since 2000

October 11, 2019

1/8
Please reload

Recent Posts

January 31, 2020