Sellers! Sell Now Before the Interest Rates Go Up!
Interest rates are hovering at historic lows of ~3.5%. Historical interest rates are 6-7% and have been as high as 15-18% as recently as the 1980s.
A 1% interest rate increase, translates into a roughly 10% increase in the price of a home or monthly mortgage rate. That means that a home that is currently worth $100,000 will be $110,000 or $120,000 with a 1-2% interest rate increase. A monthly payment of $700 will be $770 or $840!
With so few buyers today able to qualify for a mortgage or willing to even buy a home, imagine what would happen with a 1%,2% or 3% mortgage rate increase?
It would price many buyers right out of the market!
The average appreciation of home prices for the last 50 years is 3-4% annually.
So does waiting 1 or 2 years for prices to increase make sense if the equivalent price increase to the buyer is 10-20%?
Sell now before your home loses more value!
Call the team that gets them sold!
Call The Ruiz/Miller Team!