Mortgage Rates on The Rise
If you have been searching for Simi Valley Homes Coming Soon you likely have had your eye on the volatile mortgage interest rates. Last week mortgage interest rates rose to nearly pre-pandemic levels. What this means is that 30-year fixed rate mortgages are rapidly approaching 4%. Currently a 30-year fixed rate mortgage is set at 3.85% where as last week it was 3.76%. This is drastically higher than the all-time low we witnessed in January of 2021 with rates for a 30-year fixed mortgage at 2.93%. Unfortunately, the Fed promises yet another hike in rates in March 2022.
What does this mean as a buyer? This means that you may not be able to afford the same price home you once thought you could. It is important that you keep checking back with your lender as rates fluctuate to make sure that you still qualify. For example, an $800,000 home in Simi Valley with 20% and excellent credit will cost you roughly $4,000 per month when you factor in taxes and insurance. Where that same scenario would have cost you about $400 less back in 2021. Some benefits to the rise in interest rates is that it will hopefully soften the competition level in the market. It will likely eventually slow down the rapid grow in home prices but hopefully at least soften the competition level.
Surprisingly 74% of homeowners who had a mortgage prior to the pandemic did not refinance during the pandemic when rates were at historic lows. This is a shockingly high percentage. We encourage our buyers to purchase when rates are low, not necessarily when prices are low, as this will result in a better financial situation long-term. If you have any questions about any upcoming Simi Valley Homes Coming Soon, we would be happy to help – we know the market is tough out there!