This week in Phoenix real estate…the rumors are true. Mortgage rates are going up. We are seeing roughly a 0.5% bump from last month, with expectations for more increases through the year.
I personally have heard a few peeps freak out over this rate increase. Climb off the roof, my friends. Let’s keep this in perspective. The average rate over the last 10 years is in the neighborhood of 3.8%, as in less than where we are now. If you know any old-timers (like me), they will be quick to point out the double digits they all paid for their homes back in the 80’s – 18% in 1981!! Historically speaking, the average rate is 7.80%.
This week in Phoenix real estate…the rumors are true. Mortgage rates are going up. We are seeing roughly a 0.5% bump from last month, with expectations for more increases through the year.
I personally have heard a few peeps freak out over this rate increase. Climb off the roof, my friends. Let’s keep this in perspective. The average rate over the last 10 years is in the neighborhood of 3.8%, as in less than where we are now. If you know any old-timers (like me), they will be quick to point out the double digits they all paid for their homes back in the 80’s – 18% in 1981!! Historically speaking, the average rate is 7.80%.
For a $500K house with 5% down, that 0.5% bump equates to roughly $130 more per month on the old mortgage payment. But you can always buy a smaller house, or cancel that wine subscription you never use or start using the Instapot rather than eating at Taco Bell every day to cover that gap. (Less Taco bell might also reduce the need to buy larger pants…win, win). History has shown that people adapt.
I KNOW what you are thinking. Surely this means that prices are coming down? Uh, no. Maybe, MAYBE, prices don’t go up quite as fast, but with supply levels at 25% of normal, you can bet your Cheesy Gordita Crunch that prices will continue to climb.
So buyers, (broken record time) the longer you wait, the more you will pay. And possibly the fewer Nachos Bell Grande you will be eating in the future.
