EOTW

We got the news on Friday that interest rates hit a 52-week low.

You might be asking yourself, how big of a deal is that?

Let’s put it into perspective: Let’s say you’ve purchased a $625,000 house and put 20% down. 

Your mortgage would be $500,000.

Here’s how the payments would break down based on your interest rate:

• 8% Interest Rate: $3,668.82
• 7% Interest Rate: $3,326.51
• 6.2% Interest Rate: $3,062.34 (today’s rate) 

So, when you compare 8% (which we saw in November of 2023) to today’s rate of 6.2%, that’s a $7,278 difference in payments per year.

There’s no question that affordability remains an issue, but I’m glad to see interest rates come down because every drop equals lower payments for my clients.

As always, I’m here to keep you informed about what’s happening in the market.

Sincerely,

p.s. If interest rates hit 5%, would that change your real estate plans this Fall? Reply to this email and let me know!