2016 seemed to throw every sphere of business, politics, and economics for a loop. Just ask anyone keeping an eye on the real estate market! After months and months of consistently low rates, plenty of housing inventory, and strong wage growth, the market seemed to be entering a sort of “golden era”.
But the optimistic forecasts seemed to grind to a halt when November showed a sharp spike in mortgage interest rates. As the numbers surged up towards 4%, many potential homebuyers sounded the financial alarm.
If you’re wondering where rates are headed, what the spike means for you, and when you should buy, we’re here to help!
Where are the rates headed?
For most of 2016, mortgage rates hovered around 3.5% (as they were in October right before the spike). However, to gain a bit of context, it’s helpful to remember that we’ve been experiencing historically low rates in the last several years. The spike to 4.1% in November felt dramatic...but really, this increase leaves rates closer to their historical average.
Even so, experts are predicting that rates will continue to rise into 2017. Forecasts indicate that the numbers will likely stay above 4%...even reaching towards 5% as 2018 approaches.
Where do you fit in?
So what do these rate changes mean for you? As soon as you sign a fixed-rate mortgage, your agreed-upon rate is essentially “locked.” Despite the uncertainty of a fluctuating market, your monthly payment won’t change. More than just a low rate, you’ll receive peace of mind.
When is the time right for you?
Considering prices are only expected to rise in 2017, you’ll receive the lowest interest rate possible now. If you’ve been considering buying a new home in our area, we would love to assist you through the process, find the homes that are right for you, and answer any questions you may have.
Located in one of Bolton’s best-loved neighborhoods, 7 Powder Hill Road sold for $610,000 in 2016! With current rates, this property would require monthly payments of approximately $3,321. When rates go up at the end of the year, the estimated monthly payments could be as high as $3,566 per month.
392 S Bolton Road, Bolton, MA sold for $493,500 in 2016. With current rates, this property would require monthly payments of approximately $2,686. When rates go up at the end of the year, the estimated monthly payments could be as high as $2,884 per month.
159 Fox Run Road, Bolton, MA sold for $905,000 in 2016. With current rates, this property would require monthly payments of approximately $4,928. When rates go up at the end of the year, the estimated monthly payments could be as high as $5,291 per month.
*Note: all prices have been calculated assuming a 30-year fixed mortgage, 20% down payment, property taxes, and home insurance. “Before” numbers were calculated with current rates (4.16%), and “after” numbers were estimated using a forecast of 5%.
Who is Kotlarz Realty Group?
Your Bolton Area Experts: Kotlarz Realty Group is a team of real estate experts representing the best and brightest in the industry. Located in Bolton, MA, serving Bolton and the surrounding Metrowest Boston area, we provide extensive knowledge and a commitment to providing only the best and most timely information to their clients. Whether it is information on the communities we serve, the houses they sell, or anything in between, we are your go-to source for Bolton real estate industry insight and advice.
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