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Mortgage Rates rise up. What does this mean for you?
You know the saying more money more problems well in the Real Estate world the saying is, “more interest rates, more financial problems”
This week interest rates have gone up again after a slight pause from increases the week before.
Let me put it to you simply, a house that cost $400,000 with an interest rate of 4.5% makes your payment out to be $2,027 a month. If you had an interest rate at 5.5% your payment will then increase to $2,271. So, a jump of 1% could cost you an extra $244 dollars.
“Despite volatility in the stock market, the 30-year fixed-rate mortgage inched forward just 1 basis point to 4.86 percent this week,” says Sam Khater, Freddie Mac’s chief economist. “We expect rates to continue to rise, which will put downward pressure on homebuying activity. While higher borrowing costs will keep some people out of the market, buyers with more flexibility could take advantage of the decreased competition.”
In Real Estate there are always people selling and people buying. Like Sam, Khater said you could take advantage of the decreased competition.
During fall things seem to slow down a lot so there are hardly any bidding wars like you’ve seen during the spring/summer season. Why not give yourself a chance in becoming a homeowner? Don’t know where to start? I can help you step by step. Or just read some of my “buyer” blogs in the Buyer tab on my website.
By the way, Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 25, 2018:
• 30-year fixed-rate mortgages: averaged 4.86 percent, with an average 0.5 point, rising slightly from last week’s 4.85 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
• 15-year fixed-rate mortgages: averaged 4.29 percent, with an average 0.4 point, rising from last week’s 4.26 percent average. A year ago, 15-year rates averaged 3.25 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 4.14 percent, with an average 0.3 point, climbing from last week’s 4.10 percent average. A year ago, 5-year ARMs averaged 3.21 percent.
As always thank you for reading, I appreciate you and your time.
Your favorite REALTOR® gal