A quick note on mortgage rates. There’s plenty of information coming out about the real estate market right now- the market is looking much more rosy than recent past with increased demand and price and decreased time on the market. But what about those increased rates?
Freddie Mac said the average 30-year fixed mortgage rate rose to 4.51% in early July, from 4.29%, which could cause some concern to would-be buyers. However, in the big picture, increased rates means that there’s economic growth. It’s important to remember that mortgage rates are still at historic lows! A rise in rates from 4.5% to 5% adds just $75 to the monthly payment on a $300,000 house with $50,000 down.
It is true that bigger leaps in mortgage rates will increase the cost of buying a home. How far those rates go is unknown, but for now, unless the rates come close to 11%, it often will make more sense to buy over renting for those getting into the market. If you are thinking of buying or selling a home, this is still a good time to move ahead as home prices trend upwards but nowhere near what they were at the height of the market.
If you’re interested in buying a property or selling your home, please send me an email or call me at 619-888-2117.