The mortgage interest rate reached its high in 2 years at 4.5% today (7/11/2013)!!! – on a 30-year mortgage.
Here in the real estate industry, we have been talking about the possibility of interest rates inching higher. The Federal government has been keeping interest rates low to stir the housing economy and as we predicted, we cannot continue to pump money into buying low interest rates forever.
During the last 3 weeks, interest rates have rose quickly and sharply leaving many Frisco TX home buyers who are still on the fence about their home purchase at a huge surprise.
It is not surprising when you were quoted a 3.5% or 3.75% pre-qualification interest rate just a month ago, you may have to pay a whole 1% higher. Translating it in monetary value,
- $172 more per month on a $300,000 loan amount or;
- $40,000 less in home (which means at 3.5% interest rate, you could purchase a $300,000 home but with interest rate rising to 4.5%, you could only purchase a $260,000 home)
Timing the real estate market has been difficult. Most often, you would have to be several months past the “lowest”, best opportunity in order to be able to look back at history to know that “That was the BEST moment”.
So, don’t delay. Home prices are headed upwards as well. Find your dream home with the BEST Frisco TX Realtors. Call (214) 783-2210 for a home buyer consultation quickly.