Interest Rate Impact on Your Bottom Line
Rising interest rates have a significant impact on your mortgage payment and your ability to qualify for a loan. Whether you are looking for your first home or your fifth, you are probably going to need a mortgage to purchase it. The infographic below shows what your payment would be as interest rates increase.
Effect on Home Prices
Many people think that as interest rates rise, as they are predicted to do, housing prices will fall. But this is not usually the case. The increase in interest rates is tied to the growing economy and improved job market. We may see price appreciation slow down, but San Diego County still has a severe shortage of inventory. This is putting pressure on real estate prices.
Interest rate increases will lower demand because fewer buyers will qualify. This may slow down price appreciation which has been over seven percent year-to-date in San Diego County. It may also help relieve pressure on inventory and give buyers more choices. If you want to get an idea of what your mortgage will cost, you can plug your numbers into my mortgage calculator. Contact me to find out what your options are in today’s real estate market.
