If you are thinking of buying or selling Tahoe Keys real estate, you have probably been keeping an eye on the mortgage interest rates. If you are buying, this impacts your “purchasing power” (the amount you have to spend on a home for sale in Tahoe Keys). As a seller, this can impact what kind of market we are in. If the interest rates continue to rise as predicted, the demand can slow down and the inventory can catch up which results in prices leveling out. Which means as a seller, you may not get as much for your home for sale in Tahoe Keys as right now. With mortgage interest rates increasing yet again, this is something to really think about if you had Tahoe Keys real estate goals this year. However, the big take away from the increased mortgage rates is not to all of a sudden to throw in the towel and continue renting. Not at all actually. Buying Tahoe Keys real estate is still a better investment. You are paying a mortgage regardless, so it may as well be your own. Also, interest rates are still historically low. They aren’t as low as the last couple years BUT they are still low. Let’s talk a walk back into history.

In the 1970s, mortgage interest rates were 8.86%. In the 1980s, they were 12.7% (yikes!). In the 1990s, you were looking at 8.12% and in the 2000s 6.9%. Even though Freddie Mac reports increases in the last several weeks and they (along with Fannie Mae, the National Association of Realtors and the Mortgage Banker Association) are calling for them to continue to rise over the next four quarters, you can still get a great rate. Just don’t do a disservice to yourself and wait. As a seller, you could get less money for your house if inventory catches up with demand. As a buyer, you could have less to spend on a home for sale in Tahoe Keys.

If you are interested in buying or selling Tahoe Keys real estate, give me a call at 530-308-4331.