Good News, Bad News!
The good news is that when the unemployment numbers came out, it shows that our unemployment numbers are better!
The bad news is that as the economy shows signs of improving, mortgage interest rates increase.
This is what happened during the first week of October! I spoke to a lender who said he had multiple rate increases over several days and even during the day!
What does this mean?
If you have a $400,000 loan amount at 4.5% the principle and interest payment is $2027.00
If you have a $400,000 loan amount at 5.5% the principle and interest payment is $2271.00
A difference of $256.00 per month.
What this means is that if you are looking to purchase a home, your payment amount will be higher and buying power lower.
If you’re selling a home, this means the people looking at your home will expect more for their money because their money does not go as far.
We have been hearing about mortgage interest rates going up, this is not a new statement, it is just the first time in many years that we are above the 5% mark and if you are considering doing anything, we should be having a very strong discussion now!
Keeping you informed!
Call me and let's talk!