• calendar_month October 14, 2022
• folder Market rates

The current average rates are around 7% currently. The feds had announced before that they're expected to be raised at least 2 more times. These rate decisions are scheduled for November 2 and December 14.

I speak to people daily about the market, and I'd say it's a common misconception that it's a bad time to buy due to the higher rates. One important thing to consider is that depending on the local areas, there has been price corrections of over 6% on home values.

The interest rate difference of 4% to 7% for a $500,000 home with 20% down is $637 monthly ONLY IN INTEREST.
BUT. You're averaging about $50,000 less on the total purchase price on what you were paying for that home almost a year ago when the rates were lower.

If you keep that home for a year, the actual difference on the rate payments is $7,644 vs the $50,000 more you were paying on the homes total purchase price. You can keep the home for a year or two until the rates soften then refinance to actually be ahead of the people who bought when the rates were lower.

People get scared off by the temporary higher mortgage, but having a lesser amount on the mortgage note. You can have the rate lowered at a future date, to be ahead in the long run.

If you have any further questions, text or call me (805)827-0782.