There is much anxiety about inflation and its potential impact on the real estate market. The concern is justified, as we are already seeing mortgage rates surge. Anyone considering a residential purchase should act immediately before further rate increases hurt the purchasing power of buyers.
Mortgage rates just reached the highest level since the pandemic began, according to Forbes. This follows the consumer price index (CPI) eclipsing 7% for the 12 months ending in December 2021. Inflation is “driving up prices for everything from what we eat to where we live.”
As the Federal Reserve takes aggressive actions to combat inflation, mortgage rates will keep rising. What does that mean for real estate buyers? An interest rate increase of just 1% causes a buyer’s purchasing power to decline by 11.7%. In other words, if a borrower is paying $2,108 per month on a $500,000 30-year fixed-rate mortgage at an annual rate of 3%, a 1% rate increase to 4% means that same borrower can only afford to finance $441,548.
Waiting on the sidelines to purchase a residence is proving to be extremely costly. It will hurt even more in the coming months, so now is the time to buy a brand-new luxury condominium at Merrick Manor!
Located at 301 Altara Avenue, the 10-story, 227-residence Merrick Manor’s pet-friendly amenities and lifestyle truly cannot be beat. Merrick Manor also has a Zillow Walk Score of 77, making it “very walkable.”
Berkshire Hathaway HomeServices EWM Realty is the exclusive residential sales and marketing representative for Merrick Manor.
For more information about the residences at Merrick Manor, visit the new Sales Gallery in Suite 117 on the ground floor of the building at 301 Altara Ave., Coral Gables, FL 33146 – or contact the Berkshire Hathaway HomeServices EWM Realty team by calling (305) 779-6870. The Sales Gallery is open from 10 a.m. to 6 p.m. on Monday through Friday and from 11 a.m. to 5 p.m. on Saturday and Sunday.
For more information about the Commercial spaces at Merrick Manor please call ONE Sotheby’s Manny Chamizo III (786) 486-6655.