05/24/2022
Interest rates are beginning to rise once again. 😭 If you weren’t able to take advantage of the low rates, does it mean it’s too late for you?
🚨 NOPE! 🚨 It’s not! If anything it’s time to hustle and get something locked in now. We expect the Fed will signal rate increases totaling 1.25 to 1.50 percentage points this year. Don’t worry that’s still only about 6.25%-6.5%. So if you want to get technical, still very low, historically.
Home values have risen - in some cases, exponentially - over the past couple of years. But let’s look at 2022’s home prices compared to those in the 1980s and 1990s. While homes may have been less expensive decades ago, for many people, it may be cheaper to buy a home now than it was back then.
Consider the average income compared to the price of a home. In 1981, for example, the average household income was $22,390, or $1,856 per month. The average monthly mortgage payment in 1981 was $1,558.58, or 84% of the household income, with interest rates as high as 18.63% that year.
In 2021, on the other hand, the average household income was $79,900, or $6,658 per month. The average mortgage payment was $1,100, or 17% of the household income.
While property values may be at an all-time high, it doesn’t necessarily mean that the cost of buying a home is at an all-time high -- regardless of the increasing interest rates.
So if you’re buying in the Richmond Metro area let’s get after it!
Call me 804-357-8888
Xoxo
Camille
