The Big Question, What is happening to Our Real Estate Market?
Over the Past Few Years Home Prices have been on the Rise.
Until June of this year when Interest Rates went to 5.81%
Since then Home Prices have been dropping.
In the past Year, Mortgage Interest Rates have Risen from
2.77 % in August 2021 to 5.81% in June 2022.
Currently Rates are 5.22%
To emphasize what that means to Home Buyers,
we will use an example of purchasing a Median Price Home in Henderson.
Current Median Home Price is $600,000
$600,000 - Purchase Price
$120,000 - 20% Down Payment ( To Avoid Paying PMI )
$480,000 - Loan Amount
With an Interest Rate of 2.75, the monthly payment would be $1,960
With an Interest Rate of 5.75, the monthly payment would be $2,801
This is Payment and Interest. ( Not Including Taxes, HOA and Insurance )
A difference of $841 a month.
This has a lot of Buyers taking a step back to wait and see what happens.
Some good things that are happening because of this are;
- Home Prices are Dropping
- Inventory is Increasing
Picky Buyer, with more Inventory, you are more likely to find your Dream Home.
And when Interest Rates go back down, You can Refinance into your Dream Loan.
Call us if you have any questions.
