Friday March 16, 2018
Interest rates and the cost of waiting to buy a home has been a hot topic of discussion lately. Why? Interest rates have been climbing steadily since January, and it’s likely that the Federal Reserve will raise rates several more times this year.
What does that mean to prospective homebuyers? When interest rates go up, it influences both how much home you can afford, as well as how much you’ll pay over the span of the loan.
As of March 2nd, mortgage rates in the Cedar Rapids area were 4.25%, but could start rising if the Fed implements another rate increase. Think a one or two percent increase won’t affect your bottom line too much? Think again! Every .5% increase in mortgage rate reduces your buying power. The good thing is, interest rates are still at a historical low!
Some prospective homebuyers may not be fazed by the specter of 5% mortgage rates, but others should consider the ramifications (i.e. higher mortgage payments, smaller homes) if they don’t make their move now.
If you’re still on the fence, don’t wait too long! A new Skogman Home is just waiting for you. Take advantage of our competitive pricing, lock in a lower interest rate – and save a bundle!