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I’m sure you don’t want to talk interest rates BUT, actually they are not that bad!
Oh yes, rates have increased in the past 12 months, and I am sure by the time I post this they will have adjusted again. Below you will see some statistics posted by CNBC below:
The average interest rate for a 30-year fixed-rate mortgages with a conforming loan balance ($647,200 or less) increased to 5.20% last week from 5.13%.
Refinance demand fell another 8% for the week and was 68% lower than the same week one year ago.
Mortgage applications to purchase a home fell 3% for the week and were 14% lower than the same week one year ago.
With all this said, in my lifetime these are still good rates, no joke! You are reading a blog from someone that paid an interest rate of 13.5% on my first mortgage and that was on an ARM. Yes, you read that right, 13.5% on an adjustable-rate mortgage! I couldn’t afford a fixed rate because at the time it was 16%!
I’m not saying the increase does not affect your buying power and/or your budget but in all honesty, keep in mind down payment and credit scores are also a factor as these willl also affect your interest rate. The following are examples what your principal and interest payments would be for a 30-year $200,000.00 mortgage:
4% $954.83,
5% $1,073.64
6%$1,199.10
Yes, a difference but not a huge difference. What is hindering the buying power right now is the runaway freight train of home prices! We need more affordable housing for young AND older buyers and if you look around, I think I am finally seeing much more construction starting I’m just not sure how affordable!
Jamie Kardosh 231-838-2095
