Thinking About Purchasing A New Greater Charlotte Area Home?
Interest Rates Won't Be This Low Forever!
Yes, interest rates have ticked up since the start of 2021 and rose to over 3% in early March, breaking an almost year-long decline in rates. Nonetheless, interest rates still remain historically low. And keep in mind interest rates of today won't be this low forever, either, and are predicted to continue to increase throughout 2021.
While a gradual increase in 30-year fixed mortgage rates and a slight dip in mortgage applications does worry some as we enter the spring home-selling market and has them feeling like they missed the boat, here's why the rise in interest rates should not overly worry you. Here's why:
When you look at the Freddie Mac annual mortgage rates for the last five years, you gain a whole other perspective on what this uptick in interest rates might mean.
- 2016: 3.65%
- 2017: 3.99%
- 2018: 4.54%
- 2019: 3.94%
- 2020: 3.11%
Looking at mortgage rates over the last 50 years, it's quickly evident that today’s rates just over 3% are still truly outstanding.
- 1970's: 8.86%
- 1980's: 12.7%
- 1990's: 8.12%
- 2000's: 6.29%
- 2010's: 4.09%
Being upset that you missed the “best mortgage rate ever” is understandable. But be careful not to throw out the baby with the bathwater. Buying now still makes more sense than waiting, especially so if rates continue to increase this year.
Mortgage Interest Rate Projections For 2021
The Cost Of Waiting To Buy A Home In 2021
Waiting to purchase a home results in paying:
An extra $20,650 for price of the house
An additional $2,065 for a down payment (assuming 10% down)
An extra $116 per month in your mortgage payment ($1,392 additional per year)
Waiting to buy a home in 2021 ultimately reduces your equity build-up by $20,650.
Even though interest rates are rising, it's still a good time to buy a Greater Charlotte area home.
Are you ready to purchase while rates are still low? If you are:
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Need To Sell Your Charlotte Area Home Before You Buy Your Next Home?
If you need to sell your home in the Charlotte region before buying a home we can provide you with a free home equity valuation. What you don’t know can cost you time and money when it comes to selling your house. The best source of information is your real estate agent and we’ve put together a growing list of helpful resources about the home selling process. When you’re ready, call Nina Hollander at 704-779-0813 to discuss how we can help sell your home.
Matching Greater Charlotte Home Buyers With Lifestyles For 20+ Years
Nina Hollander and Carolinas Realty Partners with Coldwell Banker Realty would appreciate the opportunity to earn your trust and to help you find your dream home in 2021.
We'll help you find your lifesyle within your budget and your time-frame. Whether you're a first-time home buyer, down-sizing, up-sizing, or relocating to Charlotte, we are here to guide you throughout the process and would love to earn your business, exceed your expectations, and show you how:
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