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.
We hope you enjoyed this edition of Market Watch for Santa Cruz County. In the meantime, be sure to check out our library of resources mentioned in this episode, plus don’t miss our READY TO STAY & SELL programs allowing 0% financing for 12 months to fix up bathrooms, your roof, landscaping and so much more. And our Mortgage & Home Value Calculators will help you crunch your numbers.
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-Erick Fernandez