Buyers, don’t be spooked this October by high interest rates! Here’s why:
– An increase in rates will cost you more, but it may not be as much as you think. Example: A $300,000 loan with a 5% fixed rate comes out to roughly $1,610 a month. A $300,000 loan with a 6.5% fixed rate? $1,896 a month – a difference of $286.
– Mortgage rates are still low compared to the rates from the last 40 years. Consider October 1981. The 30-year mortgage rate was 18.45%. Now, that’s something to fear!
– Few people are selling, and there just aren’t enough houses to go around—and it’s going to be a while before builders can catch up. Translation: Buying isn’t going to get cheaper anytime soon.
If you were ready to buy before rates crept upwards, don’t let today’s numbers derail your plans. Instead, revisit the numbers, widen your search, and consider new construction where you won’t have to deal with mobs of other buyers.
We’re here if you’d like to chat more about buying this fall. DM us, and let’s talk about strategies to get you in your next home by the end of the year.
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