Real Estate — Buyers Peaking Interest
The sudden spike in interest rates over the last few weeks has helped drive (what was) a slow winter market in to a flurry of activity. Over the last 3-4 months the general buying public began taking for granted historically low rates (i.e. 4.275% for qualified buyers). There was a common mentality and clouded belief that rates would stay this low through the foreseeable future. No matter how much I preached to people that it is just a matter of time before they spike… only a few people listened! What was, just a couple months ago, a 4.275% rate is now a 4.875% rate. This may not seem like much, but on a $300,000 loan that equates to approximately $110 more each month over a 30 year mortgage; or a $39,600 increase in payments over the term of 30 years. Nonetheless, this sudden spike in rates has caused a lot of buyers to re-evaluate their situation. When I saw people becoming complacent with low rates, I knew it would only be a matter of time before they found out the hard way that the time to take advantage is now!