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.

Christine DiCarlo

Real Estate Broker License #01290192

949.433.4372 Mobile