10/14/2022
Real Estate!?!
Market statistics say that if you haven't bought or sold a house in the last 24 months, you've probably thought about. Almost 7 million homes are bought and sold in the U.S. every year (Statista.com)
Be honest, you love scrolling through Zillow and looking at houses. We all do.
And in the last few years, record-low interest rates have made it even more tempting, appealing, possible to get into that new place. I closed hundreds of mortgage loans in 2020 and 2021 with interest rates starting with a 3 or even a 2!
However, things are haywire right now. Freddie Mac shows that 30 year fixed loans are at or near 7% right now. That means borrowers closing today on a $250,000 loan will pay around $1,000 per month more in interest than those who closed in January 2021.
Why? Well, the Federal Reserve has been raising the base, prime interest rate in order to combat inflation which is at a 40 year high.
You may have seen, that the Consumer Price Index is high. That means all the stuff you buy is more expensive than it used to be. You've definitely noticed that. The cause of the price spikes is due to inflation, and very simply put, the Fed is attempting to combat inflation and bring down prices, by making it more expensive to borrow money.
So what does all of this have to do with Real Estate? Well, you may have thought about moving and these rates are preventing that. The good news, however, is that rates will come down. They always do. Now is a good time to explore different options and an experienced loan officer can show you different loan products that you may not have considered in the past. And when the time is right, you can always refinance into the lower rates when they come back.
When the time comes to close that loan and get into that new dream home, I would love to help. Tell your loan officer you've got a guy.😉
