There’s been really big news lately regarding interest rates: Right now, they’re at a 13-month low, reaching almost the same level they were at this time last year.
They had peaked around 5%, and now they’re in the lower fours. This means if you’re looking to buy a home, one that was $500,000 is now about $150 cheaper per month than it was only a few months ago. On a $1 million dollar purchase, that’s almost $300 less per month.
As far as what rates are expected to do this year, we don’t really know for sure. Last year, experts predicted that rates would top out around 4.7% to 5%, and that’s exactly what happened—they ended the year right around that range.
This year, those same experts are predicting rates to be in the low-to mid-5% range by the end of 2019. If that holds true, we still have another point or more for the rates to grow. We’ll simply have to wait and see how things pan out.
If you want to know in greater detail about what’s happening with interest rates in our market, don’t hesitate to reach out to me.