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
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
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
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
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.