Mortgage rates just surpassed 4% for the first time since 2019, but experts say rates will continue surging beyond 5% as soon as “within a month.” A sharp increase in such a short period of time would significantly impact the purchasing power of buyers, so anyone considering a potential purchase should act immediately before new rates kick in.
Over the past decade, the average cost of a 30-year mortgage only exceeded 5% for one six-week period in late 2018. However, a new report from Bankrate cites multiple experts predicting that a 5% average is imminent.
“I would expect 5 to show up within a month,” Naroff Economic Advisors President Joel Naroff told the publication. Florida Atlantic University housing economist Ken H. Johnson said the increase could come sooner. “Unless things slow down in the 10-year Treasury note market, any day now,” Johnson said.
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 $2,387.00 per month on a $500,000 30-year fixed-rate mortgage at an annual rate of 4%, a 1% rate increase to 5% means that same borrower can only afford to finance $445,000.
Waiting on the sidelines to purchase a residence is proving to be extremely costly. It will hurt even more in the coming weeks, 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 is just steps away from the world-class Shops at Merrick Park and 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.