Now consider this. Fed policymakers’ have made public statements that the central bank probably will raise its benchmark rate this year.
That gives food for thought to your buyers and sellers in the real estate market.
If the rate goes up even .5% that could make a difference in their opportunity. Here’s why: For every .5 point the rate goes up, a buyer loses 5% of his buying power. That means a $200,000 buyer can now only afford $190,000. That’s bad for the buyer and shrinks the pool of buyers for the seller. Also note, for the buyer, .5% on a $300,000 mortgage means $90 more a month on the payment! That’s $1,080 a month and $10,800 over 10 years!
Sell now to move up and your pool of buyers just may be larger.
Buy now? And you may put $10,000 or more back in your pocket!
Category: Words Of Wisdom