What’s Going on With Interest Rates?

What you need to know about the future of interest rates in our market.

What's going to happen with our interest rates moving forward? I want to give you an update on what's happening with our interest rates and where we expect them to go. As of writing, we're at a little over 7.5% on a 30-year fixed, conventional loan moving forward.

Fannie Mae is expecting our interest rates to go down to 6.8% in Q3 of this year and down to 6.7% in Q4. So what does that do for you as a homebuyer? Let's use an example that you're in to buy a home in today's market, at $1.5 million on a 7.5% rate. 

Your payment on that home is going to be $9,882 each month. If you wait until Q4, where interest rates get down to about 6.7%, your new mortgage payment will be $9,315, a saving of $567. This makes it seem like it’s a great idea to wait until Q4 to buy, but remember that as soon as interest rates come down, we will probably see prices start to go up.

Do you want to pay the higher interest rate now or the higher purchase price? Ultimately, it depends on your situation. If you have questions or want to talk more about this, give me a call (626) 340-8050. Make it a great day!