What do changing interest rates do to the pocketbook?
The 30 year interest rate is now above 5% for the first time since 2011 and with upcoming rate hikes anticipated what does this mean? These rates are still historically low but it does mean that to qualify for a median priced home of $595k in CA with 20% downpayment you are looking at some changes. These two graphics show how much more will be needed for a minimum qualifiying income as well as what difference you will see in a monthly mortgage payment. Homeownership is still as desirable as ever but it is going to cost a little more in the near future. Don't hesitate. With inventory at peak highs for this time of year, take advantage of buying soon from a great selection. And sellers...you too can take advantage of these serious buyers when priced perfectly. Contact us today for a home evaluation.