February is here! With Lunar New Year, Super Bowl Sunday, Valentine’s Day, Oscars and Mardis Gras celebrations happening this month, we hope to connect with you in person soon.
real trends: The Rising Rate of Interest
You have probably heard predictions that interest rates are expected to begin to increase over the next year. This will have a direct impact on our housing market.
How This Works An increase in interest rates increases the mortgage payment on a given loan amount. A person who can only afford a certain payment will find the loan amount they can handle goes down as interest rates rise. Thus, the price they can pay for a home shrinks as interest rates increase.
How This Affects You Buying a home: A 1% rate increase reduces the amount of a home a buyer can purchase by about $11,000 per $100,000. In other words, if a buyer could normally afford the payments on a $500,000 house and rates jump 1%, those same payments would now only buy a $445,000 home ($11,000 x 5 = $55,000 reduction).
Selling a home: In the same way, increased interest rates mean decreased buying power resulting in fewer buyers able and qualified to purchase your home. This may potentially put downward pressure on certain housing markets. You should consider acting now while there are many buyers taking advantage of the current markets’ low rates!
Want to learn more? Call Laura today and let’s talk real estate!
East Bay Lifestyle + Leisure
ANNUAL ST. PATRICK'S DAY PARTY!
Join us on Thursday, March 16 from 6-9pm at Jack's Restaurant in Pleasant HIll. Appetizers, beer and wine will be served. RSVP to Nancy Cowles at [email protected]
CUPID'S 5K LOVE DASH
Sunday, February 12 Hidden Valley Park, Martinez learn more »
FRUIT TREES 101
Thursday, February 16 Rodgers Ranch Heritage Center, PH learn more »