Let’s Break Down These Interest Rate Increases
When it comes to the recent headlines on interest rate increases, it might be a bit overwhelming so we’re putting it all in layman's terms. There are a lot of moving parts that determine these rates, but in the end, they will impact buying power, which affects both sides of the transaction
For example, a typical mortgage payment on a $1.5M house can see a difference of about $340/mo when rates go up from 3.3% to 3.8%. Rates are just starting to go up, so what we are seeing is buyers in somewhat of a frenzy to lock in a home before they go up any more. Because of this, the rising interest rates are not having a slowing effect on the market at the moment, but that could change over time as we see them tick up over the next few months.
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