According to Freddie Mac’s Primary Mortgage Market Survey, long and short term interest rates went up slightly in the week ending January 11th. The 30-year fixed rate (FRM) averaged a .03% increase to a 6.21% average, and up .06 from last year at the same time, while the 15-year fixed rate increased by .02% to a 5.96% average, up 1/4% from last year. Adjustable Rate Mortgages (ARM) averaged just 6.03% and 1/4% from a year ago.
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What’s that mean for loan payments? Well, not really much at all. Take a $100000 mortgage at last year’s rate of 6.15%, and your monthly principal and interest payments would be approximately $609.00, while the same FRM at 6.21% would be just over $613.00. Now, I like coffee as much as the next person, but I could certainly stand to forgo a $4.00 latte a month in order to make my mortgage payment … how about you?
So what does that mean for real estate in the New River Valley? Not a whole lot! Take the article with a grain of salt, as it figures in national averages and can’t look at specific inventory. Locally, we’re still listing a lot of properties and taking a lot of calls from out of town buyers – in fact, this week alone I’ve worked three days with folks moving into the area and looking for homes priced $300000 and up! It’s still a good time if you’re a seller although appropriate pricing will be more important than ever, and as a buyer there’s more inventory to choose from, meaning seller-paid concessions and adjustments. Let’s talk and see how we can get started!