Community Corner
Real Estate Market Update - Mortgage Interest Rates are Rising
Interest rates are rising as the real estate market recovers. Should you wait for prices to go up before selling? Here's some info to help you decide.
Mortgage buyer Freddie Mac announced today that mortgage interest rates have increased on a conventional loan for the fifth consecutive week, marking the highest interest rates since 2009. According to Freddie Mac, the average interest rate is 3.91%. That’s up from 3.81% a week ago and up nearly a half percent since May 1.
This can have a significant effect on your purchasing power when buying a new home. Experts say a 1% rate change can decrease your buying power by 10% or more. Rates are rising because they tend to follow the yield on the 10 year treasury note, which rose this week to it’s highest level in 13 months.
Many people have been sitting on the fence as they consider selling their current home. Most are waiting for prices to go up higher, and they have. In Woodbury, they’ve gone up 11.6% in the past year (see graph). But, what are you going to do when you sell your house. Buy another one? The price on that house is going up, too, and with the latest interest rate increase, you may not realize any net gain by waiting.
Find out what's happening in Woodburywith free, real-time updates from Patch.
Does this mean you missed the boat? Of course not! Home prices are still low and these mortgage rates are still a great deal. Historical low supply means most homes are selling fast. I am frequently seeing multiple offer situations with my clients as buyers are scrambling to act fast to get the best homes on the market (see Days on the Market graph).
An experienced mortgage lender and real estate agent can help you determine if now is a good time for you to buy or sell a home. Becky and I are experts in the Woodbury area real estate market and would be happy to talk with you about your home buying and selling options.
Find out what's happening in Woodburywith free, real-time updates from Patch.
John and Becky Durham are Western WI and Minnesota real estate agents with RE/MAX Results and Durham Executive Group. www.results.net/john.durham
John Durham - 651-231-2191 john@durhamexecutivegroup.com
Becky Durham - 651-231-2192 becky@durhamexecutivegroup.com
- Housing statistics and data provided by John and Becky Durham are based on data available as of June 3, 2013. Data comes from the Regional Multiple Listing Service of Minnesota, Inc. Data deemed reliable but not guaranteed. Powered by 10K Research and Marketing.
