Free Home Value Report

Monday, December 26, 2016

Will Rising Interest Rates Cause Home Prices to Fall in San Diego?

Last week, I uploaded a video talking about how a rise in interest rates leads to a decrease in a buyer’s purchasing power.

To put simply, the more money you need to spend on interest, the less you will be able to spend on the principle.  So as interest rates go up, you will be able to afford less of a home.  

I got a lot of feedback from that video and the #1 question I received was “Suzy won’t rising interest rates cause home prices to fall?”   

While we don’t have a crystal ball, if we look back to the market historically, rising interest rates haven’t caused home prices to come down at all.

If we look back over the last 3 decades, we have 4 instances where interest rates rose more than a full percentage point in less than a year.  I all 4 instances, home prices continued to go up!  

As a buyer or a seller, if you have any questions about the housing market, you can text or call me or drop me an email at any time.  

If you’re ready to get pre-approved or refinance at today’s lower interest rates, we’ll put you in touch with one of our great lender partners.  

If you’re a seller curious about your current home value, use the link in this email to get your instant home valuation.   I will follow it up with a more detailed, no obligation home value report.

Monday, December 19, 2016

What Do Higher Interest Rates Mean to Your Purchasing Power?

As you may have heard,  the Feds raised interest rates last week and disclosed that they anticipate raising them a couple more times in 2017.  So how does this affect the real estate market in San Diego?  Well if you were planning on buying or refinancing.  NOW is the time to do it.  

Rates are still very good compared to where they might have been when you got your current loan.  If you are planning on buying a home you may want to start working on that process NOW as well.  As rates increase your buying power decreases because of the rise in your payment and what you may qualify for in regards to a loan amount.  

So what should I do you ask?  Simple, call us NOW and let’s get one of our lender partners to lock you into a better rate than what you have now and get your refinance done and avoid losing a great opportunity to lower your rate and payment.

If you are thinking of buying a home then let’s get you pre-qualified before rates get worse and reduce your buying power and the type of home you desire.

Here are a few examples of how much your purchasing power decreases with even a slight uptick in interest rates:

Courtesy Keeping Current Matters.