Kyle Wells, your Sacramento-area Realtor, discusses the effect of
interest rate increases on an average buyer in this market.
This video is for prospective buyers and sellers looking to understand
how interest rates are affecting their bottom line. This recording was
made Thursday, September 29, 2022, and interest rates are floating
around 7% for 30 year fixed loan. Further examination reveals that the
rate is trending in the negative direction, which means it’s continuing to
rise.
In the past, a prospective buyer in the Sacramento County, Placer
County, El Dorado County area who purchased a $500,000 home with
10% down on a 30-year fixed conventional loan at 3% could expect a
payment of around $2600 monthly. Today that same payment would
be $1100 higher per month.
Conversely, a buyer approved last year for a $3700 monthly payment
was looking at a home in the $750,000 range. Today, that same buyer
may be looking at a home in the $500,000’s range.
What does this mean?
Check out the video for more details.
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