Last summer you considered buying a new home. You heard inventory was low and several homes in the area had multiple offers. You decided that it was not the right time for you. You figured you’d wait until the market “calmed down” and more homes came on the market. Maybe next Spring,,,
Spring is here! I have some good news and some less than good news. The good news is many more homes are coming on the market. We still have low inventory compared to the number of buyers looking, yet it is higher than last year. The not so good news is: it finally happened. Our historically, crazy low, interest rates have begun to creep up. Your 3.75% interest rate quote from last summer has gone to graze with the dinosaurs. So what does this all mean?
As interest rates rise, so do monthly payments. A $300,000 house at 3.75%, would have a principal payment of $1,389.35. As of mid-April 2018, we are seeing rates closer to 4.5%, which would make the same $300,000 home monthly payment $1,520.06.
As the economy continues to grow, fears of inflation come in to play. The Federal Reserve loves to curb inflation by raising interest rates. Predictions are showing rates could continue to slowly tick up throughout the year. Many economists feel they will reach 5% by year end.
The good news is, historically 5% is still really low. The bad news is that same $300,000 house payment could be $1,610.46 by the end of 2018. Home prices in Atlanta are also continuing to rise.
So what can you do? Call us! The time is now. We know the Atlanta Market. We are Your Local Economists. Let us help you navigate this. 404-978-2273