|Time to Sell is soon! 1% raise in interest rates equates to $30,000 sales price difference on a $300k house.
Interest rates will have to be raised within the next few years, for any chance of the Federal Reserve to keep this “money printing circus” under control.
Lets look at a $300,000 house bought today @ avg rate of 2.87%.
DownPayment, $10k, Monthly Payment $1,785.
Lets look at $300,000 house bought in 1 year @ 3.7%.
DownPayment, $10k, Monthly Payment $1,925.
That ~1% interest rate equates to a different of $1,680 more towards your yearly mortgage. To match lower interest rate mortgage, buyers will have to buy at $270k to keep the mortgage the same at $1,785.
$300k – $270k = $30k.