In the last two weeks we've seen interest rates on 30 year fixed mortgages move from 4.5% to 5.5% (or higher) that's a big OUCH. This full interest rate point swing has meant that almost overnight, buyers lost well over 10% of their buying power. Another way to look at it is housing just got 10% more expensive. While everyone was thrilled to see 4.5% interest rates, myself included, from the very outset I had concern about what this means for housing long term. The short term benefits are large and … [Read more...]
Twin Cities Interest Rates Drop to Multi-Year Low
Over the last couple of weeks I've been seeing rates on 30-year fixed mortgages fall substantially... I've seen some recent quotes for 5.5%! When you look at a straight affordability perspective, taking 1/2% off the interest rate (which is what has happened in the last few weeks) on a $200,000 loan saves you $1000 per year in interest charges, which would be a monthly savings of $83 or is like taking nearly $14,000 off the purchase price of the house, as compared to the higher interest rate. With inventory at … [Read more...]