What happened this month in real estate? Let’s take a look…
Interest rates jumped the highest they have in 3 years to 4.5-5%, which could bring this housing market frenzy to a close. This was the largest jump within a week in over a decade!
One year ago today, interest rates were at 2.65% and now they’re at around 4.8%, that’s double from a year ago.
The question here is will 5% be a common percentage for us. If that’s so, someone who put down a 20% downpayment on a $585,000 home will see their mortgage payment jump by as much as 10%.
How does inflation play into all this? It has not yet shown that buyers are reacting in a different way–housing is still in demand. Buyers are even accelerating their plans and increasing their bids in an effort to close on a loan before rates go higher.
Since we’re at the beginning of the spring shopping season, there’s also an ongoing shortage of houses which is why we’re seeing demand still so strong.
Here at Stewart Real Estate Group, we are watching every economic indicator and tracking inflation and interest rates very closely, but as of right now we say get it done! We don’t know what the future holds, so now is the best time.
If you have any questions about this market update or real estate in general, feel free to call or email me. I would love to hear from you.