If you have been thinking about buying Tahoe Keys real estate, you have probably been keeping an eye on the mortgage interest rates. For the last several months the rates for a 30 year fixed mortgage rate have been around 3.5%. Just last week they made the jump up to 3.94%. This is typical after a presidential election. There is always uncertainty in the markets on who will win and many investors will pull their funds from the less predictable stocks and choose Treasury Bonds. Once the election has ended, investors return to the market forcing the Treasury to raise the bond rates. Basically, if the economy is in good shape, the interest rates go up. So what does this mean for you if you have been searching for real estate in Tahoe Keys?

Well the good news is that even though rates are higher than they have been in the last several months, they are still lower than where they started in 2016. In fact, at almost 4%, the mortgage interest rates on Tahoe Keys real estate are still the lowest they have been in over 4 decades.

The bad news is that when interest rates increase, so does your monthly housing cost. If you have wiggle room in your budget, you may be able to make a purchase on a home for sale in Tahoe Keys work. However, if your budget is strict and your mortgage is being taken up by a higher interest rate, you may have less left over for actual house price. Basically it could mean that when shopping for a home for sale in Tahoe Keys, you may have to shop in a lower price bracket.

Don’t let this news discourage you from buying though! Rates would have to hit 9.1% before it would make renting cheaper than buying a home for sale in Tahoe Keys. Interest rates were also predicted by market experts to increase by the end of 2016 so this hike is not completely out of the blue. In order to ensure you get the most bang for your buck, don’t wait for interest rates to go up more. If you are looking for a home for sale in Tahoe Keys, give me a call at 530-308-4331.