Interest Rates in Today’s Market

Keeping Current Matters just put out a great blog about interest rates! Good News! THEY WILL COME DOWN!! This year has been a wild ride in the mortgage industry… starting off the year around 3% and now being upwards of 7%, such a hike in such a short period of time. This has altered a homebuyers power to really get what they want. With each 1% increase in interest rates, the purchasers buying power goes down by 10%.. If someone was able to afford a $700k house at the beginning of the year, today they would only be able to afford a home with a purchase price of $420k. HUGE DIFFERENCE.

Sadly, high interest rates and inflation are the best of friends! Luckily for us, there have been some signals that things are cooling and may help us determine what’s to come down the road.

Take a look at this article from KCM to see what experts are saying! https://www.keepingcurrentmatters.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/

My advice- If you find the perfect property now and you can afford the monthly payments, then go for it!!! You can always refinance later! There are also options that lenders provide to help buyers with their monthly payments. If you are interested in learning more, please don’t hesitate to reach out! I am here to help 🙂