RATES ARE RISING! Let’s Explain In Layman’s Terms
It’s all about the rising interest rates for mortgages and with low inventory and increasing sales prices here in Silicon Valley, you’re probably curious how it will impact your pocket book. 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. From Willow Glen to Cambrian and Saratoga, the up and coming, and currently hot neighborhoods will feel it.
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 Silicon Valley’s South Bay. 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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