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!