LIME REALTY GROUP follows the daily mortgage rate and from time to time we like to talk about it and how it affects buyers.
Right now, the mortgage rate for a 30 year fixed mortgage is at 4.59%. This rate continues the upward climb we saw throughout 2018. And it looks like it’s going to continue in 2019.
Let’s talk about what that means for you as a buyer and a seller… As a buyer, the lower the rate, the more value your dollar has. At 3.25% maybe you pre-qualify for $250k but at 4.50% you’re going to only pre-qualify for about $200k. Now these aren’t 100% accurate numbers because it will be different for each person, but it is accurate that the higher your rate is, the less value your dollar has against the purchase of a home.
For a seller, that means the higher the rate goes, the more potential buyers are priced out of the market for your property. And right now, we haven’t seen a rate this high in years.
Although we’re nowhere near the highs that occurred when the bubble collapsed during the recession, we’re starting to climb back up there and fast.
So watch your dollars, everyone. And stay tuned for more information on the rate as it changes from Lime.