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:

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TO CONTACT OUR TEAM PLEASE CALL OR EMAIL US:

CRESTMARK REALTY GROUP

RAEGEN JOHNSON

Realtor

C:  602.330.5362

O:  602.362.5484

E: Raegen@RaegenJohnsonGroup.com

SARAH HERR

Realtor

C: 602.499.3175

O: 602.362.5484

E:Sarah@RaegenJohnsonGroup.com

JULI FEINBERG

Broker

O: 480-342-8889

E: Julif@jclam.com

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