A recent article in The Island Packet discussed how US mortgage rates are on the rise. After years of record low interest rates this rise could have a
negative effect on your purchasing power. According to Freddie Mac the average rate on a 30 year fixed mortgage is now 4.46%, which is up almost a full
percentage point from a year ago.
Any increase in the interest rate reduces your purchasing power. For example a buyer that a few months ago locked in a 3.35% rate on a $200,000 mortgage would have a monthly payment of $881 according to Bankrate.com. The same mortgage at the current rate of 4.46% would increase the monthly payment to $1,008 per month (not including taxes, insurance). This adds up to quite a bit over the term of the loan, $45,720 to be exact, which is why many buyers have been getting off the fence to BUY NOW. This is no better illustrated than by the significant reduction in inventory levels on Hilton Head Island and in Bluffton. We are now below a 9 month supply of homes and condos and that number continues to drop.
For many of you that have been considering buying but are not sure, this should be a wake up call that NOW IS THE TIME TO BUY!!! Although the Fed is doing what it can to raise interest rates, they are still extremely low. Does anyone remember the 1980's and interest rates in the 17%-22% range? As inventory levels continue to plummet the choices you have to choose from dwindle as well. As this continues your dream home might be gone while you procrastinate on whether you should BUY NOW or wait. But let me ask you this question, 'What are you waiting for?' There has not been a better time to purchase real estate, especially on Hilton Head Island or Bluffton. You have spent the last 20, 30 or 40 years working so you could enjoy your life. Why wait any longer when you can take advantage of prices that have not been this low in 10 years and interest rates that are still ripe for the taking. Take advantage of this opportunity before its to late and your 20/20 hindsight tells you that you missed out on a once in a decade opportunity.
PNP Real Estate
Our goal is to help you Buy or Sell your property in a timely fashion by providing you with all the information necessaryFor answers to all your questions contact us at (843)-338-6737.