Are you on the fence about buying, wondering when is the right time to act? Well the answer is NOW!! Or 2 years ago but I am not sure who has a time machine that you could borrow. Anyway, we are currently seeing some historically low interest rates. I am talking about some of the lowest mortgage rates ever!!! Like most things that are too good to be true, they will not last long and this is a prime example. The economy has been dragging and was slow to recover but we are now starting to see new evidence and life has come back into the housing market. 2015 is staged to be a big real estate year and here is why I agree.
Interest rates are not going to stay this low forever, and as soon as the housing market steadies, which we are already seeing signs of, the fed will raise rates. Take a look at the example below showing a comparison of the current rates to what is projected to happen over the next year or so. As you will see if you wait too long and the rates jump back up to 5% you will be losing nearly $3,516 per year!!Over 10 years that is $35,160!!!I don't know about you but I could certainly use an extra $3500 per year!
$400k loan at 3.76% = $1,854.73 Over 30yrs $667,704
$400k loan at 5% = $2,147.00 Over 30yrs $773,021
That is a difference of:
$293 per month or $3516 per year or $35,160 for 10 years!!
Another issue we are having in the Cape Cod housing market is a lack of quality inventory. In my opinion I think we will see a lot of new listings hit the market this year. We have been waiting years for the market to improve and now more than ever is the ideal time to list your home. The market is up and more importantly there are a ton of investors, first time home buyers, retirees and many more groups of people ready to take action. That built up demand creates a housing frenzy driving up prices.
That is all for now as I could ramble on for hours but if you would like to chat more about the #CapeCodrealestate market or get real time housing market stats for #CapeCod or anywhere in New England visit my real estate website at danneske.raveis.com. One of the best #realestate websites out there. You can search properties, sign up for instant alerts, get mortgage and insurance info, get realtime housing stats and much more. Happy New Year!!
Interest rates are not going to stay this low forever, and as soon as the housing market steadies, which we are already seeing signs of, the fed will raise rates. Take a look at the example below showing a comparison of the current rates to what is projected to happen over the next year or so. As you will see if you wait too long and the rates jump back up to 5% you will be losing nearly $3,516 per year!!Over 10 years that is $35,160!!!I don't know about you but I could certainly use an extra $3500 per year!
$400k loan at 3.76% = $1,854.73 Over 30yrs $667,704
$400k loan at 5% = $2,147.00 Over 30yrs $773,021
That is a difference of:
$293 per month or $3516 per year or $35,160 for 10 years!!
Another issue we are having in the Cape Cod housing market is a lack of quality inventory. In my opinion I think we will see a lot of new listings hit the market this year. We have been waiting years for the market to improve and now more than ever is the ideal time to list your home. The market is up and more importantly there are a ton of investors, first time home buyers, retirees and many more groups of people ready to take action. That built up demand creates a housing frenzy driving up prices.
That is all for now as I could ramble on for hours but if you would like to chat more about the #CapeCodrealestate market or get real time housing market stats for #CapeCod or anywhere in New England visit my real estate website at danneske.raveis.com. One of the best #realestate websites out there. You can search properties, sign up for instant alerts, get mortgage and insurance info, get realtime housing stats and much more. Happy New Year!!
