Start Your Property Search

Interest Rates and Thanksgiving Turkey

Let’s break it down and keep it very simple: We keep hearing about how interest rates are going to change, and just to give you a little perspective:

  • In July 2016, interest rates were at an all-time low of 3.41%.
  • In November of 2018, rates are at 4.83%.
  • Experts predict that rates will rise to about 5.02% by June 2019, and 5.8% by November 2019.

That’s almost a full 1% increase from this year to next year. But what does that all really mean?

For every full 1% that interest rates rise, your purchasing power—your ability to keep your monthly payment at about the same range—decreases by about 10%.

That means if this year, you were trying to buy a $295,000 house to keep your payment at a certain level, next year at this same time (if interest rates increase by a full 1%), you’ll only be able to buy a house for $265,000. That’s a $30,000 change, and it could make decision-making much simpler now, as opposed to waiting until next year.

Now, for my tips about making your holiday turkey a success:

  • Brine it
  • Inject it
  • Baste it with butter
  • Or, do all of the above

Google is your friend when it comes to preparing a great Thanksgiving meal, so do a little online search a few days in advance, and you should be able to make your holiday turkey a sparkling success.

For more information on this topic, or if you have any other real estate-related questions, feel free to reach out to us or visit us online at www.culhaneproperties.com. Until then, have a happy Thanksgiving!

Post a Comment

Learn about our proven and repeatable home selling system to net you top dollar.

We proactively seek out properties for our buyers, learn about that here.

"I'm not bragging, I'm applying for a job. I want to be YOUR Realtor!" - Shawn Culhane