Interest rates have risen since the election, most experts were predicting rates to be around 3.6% for the 4th quarter of 2016 and their predictions have fallen short by almost a half percent.
So what does a half percent cost the average home buyer?
Using the median home price in the King County region of $517,000, you can see an increase of .5% on your mortgage interest rate can be the equivalent of $25,000 of purchasing power for the same monthly payment.
While many would be home buyers assume prices will come down in the face of rising interest rates, and while they may be true over time, in the short-term buyers rush to purchase causing a spike in pending home sales.
Couple rising interest rates with the low inventory in the region and it’s a double whammy for would-be home buyers. Remember that when inventory is less than a 3-month supply home prices rise, and in all markets in the King County region, we currently have less than 1.5 month supply of homes.
We can help, call Jana today at 425-310-2340