Mortgage Rates and Real Estate
Mortgage Rates and Real Estate
What about mortgage rates and real estate?
Most of today’s buyers are looking for the best deal and sellers want to maximize profits when they sell. So what’s wrong with waiting for something better to come along before purchasing or listing your Cincinnati property for sale?
2 words “mortgage rates”. While today’s rates are at historical lows nobody can predict the rates a year from now. Economists make educated guesses and while waiting to save a down payment or to clear up debt is good- waiting for a better deal may not be the best plan.
For fun I checked historical mortgage interest rates for October:
Buyers in 1981 faced sticker shock with 18% + interest rates -a good 15% higher than today. Deals were made and homes were sold in spite of the high monthly mortgage payments.
Today’s buyers waiting for the best deal need to see what higher interest rates cost. Picture buying a home for $206,250 and putting $10,000 down. Your payment monthly (not including taxes):
The best deal today may be taking advantage of low, low interest rates. Not waiting for a better deal that might cost more because rates increased -even by a half a point- increasing not only your monthly payments but the total amount owed over time.
