If you’re reading this article there’s a good chance you are already aware that mortgage interest rates have been on the rise. According to the Freddie Mac web site the average interest rate last year for a 30 year fixed mortgage was 2.96% with .7 points. When I checked that site May 4 the quoted rate for the same mortgage was 5.1% with .8 points. 5.1% is a lot higher than 2.96% but is still not a bad rate. The average interest rate in 2018 was 4.54% and that was considered good at the time. The year I got my license it was over 9%!
So what does this approximate 2% increase in rates really mean? To buy the same house as last year your payment will be higher, the sales price would need to come down considerably which isn’t happening, or you will need to buy less house to keep the same payment.
For example- if you were looking last year to buy with a $500,000 mortgage you would have had a payment (principle and interest) of approximately $2097. That same (approximate) payment would get you a $390,000 house today. Or buy the $500K house and increase your payment by close to $700.
I am hearing nothing about rates coming back down anytime soon and will probably be increased again. If you are considering buying a home in the near future you should act sooner rather than later. There is still a low inventory, prices are continuing to increase, and when rates go up again your price range will drop.
If you are considering selling you shouldn’t probably wait too long. So far I’m not seeing a flattening or decrease in prices, but at some point as rates increase your buyer pool will start to shrink.
Jackie Hawley
Coldwell Banker Professionals
Cell/Text: (248)736-6407
Email: Jackie@JackieHawley.com
Independence Oaks County Park, Clarkston MI Offers Something for Everybody Year ‘Round
and ski trails, overnight camping area, boat launch (non motorized boats) and boat rental. Picnic areas, ball field, sand volleyball courts, playground. horseshoe pits…
The Lewis E. Wint Nature Center offers exhibits and year-round educational programs conducted by park naturalists. The Cohn Amphitheater accommodates 150-200 guests, and the Rubach Sensory Garden boasts a gazebo and water garden. 
Southeast Michigan Real Estate 