You have heard people talking about it… “Interest Rates are going up!” But let’s take a realistic look at that statement. Interest rates ARE STILL LOW. While rates are at their highest level since February 2011, they remain much lower than the historic high of more than 18 percent in 1981. That puts things into perspective…doesn’t it?The Feds have made 2 recent rate increases, both in 2018… one on September 9th and one on December 18th. Both increases were 1/4 of a point or .25 of one percent. If you are in the market to buy a home it still a great time to get a low interest mortgage rate.
During the colder winter months the market traditionally hits a seasonal slow down. So far this year inventory remains high. * In the last 30 days there have been 463 price changes in Massachusetts. 96% of those price changes were price REDUCTIONS. Market slow down + high inventory = potential price reductions and opportunity for buyers ready to make a purchase.
Rental rates are at a historical high for our area. If you are renting a home or an apartment you may be paying MORE than a mortgage right now. A typical rental rate for a 3 bedroom home in our area averages about $2000 per month. A 30 year fixed loan amount of $250,000 at a 5% interest rate MAY be cheaper than renting. ** Here is an example of what a monthly payment COULD look like:
* Price change information gathered from MLS PIN
** This is an example of a loan payment. Actual payment costs may differ.