Let's say that you are getting a $200,000 mortgage. A few months ago, a 30 year mortgage at 3.5% would have been $985.48 (principle & interest only, not including property taxes & insurance). To get the same payment today, at 4.5% you would only be able to get a $178,000 mortgage, or about 10% less. Do you think that this would tend to slow down activity some? Well, it has.
A lot of people I talk to will ask me "How's the real estate market, Greg?" They watch mostly national news and hear that the home values have increased 20% over the last year. Yes, but only in those places where values dropped more than 50% during the "mortgage meltdown" years (2007-2001), like Phoenix, Las Vegas and California. They still have a way to go before catching up. So do we, but on a smaller scale. While we lost about 15% during those "meltdown" years, we've gained back approximately 5% since.
Question to the Reader: How has rising interest rates affected your approach to the housing market?
www.GregLobb.com
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