It’s Friday, March 17th. Happy St Patrick’s Day. Only time of the year I get to break out this tie and want to give you something else that’s green. With the recent rate drop this week from the fake bank crisis. I’m going to show you a five month affordability change for housing.
Let’s presume a loan amount of $500,000 loan term, 30 year fixed in October of 2022. That 30 year fixed is about 6.92%. Today, it’s about 6.49%, down almost a half percent. For those of you technical people, it’s an April 6.67% without an interest rate change. The monthly payment was 3.299, about five months ago. Now, 3.157 gives you a monthly difference of about $142 a month. So if you’re looking to buy a home today, you can buy about $23,000 more home today than you could have in October.
It just goes to show you the power of lower interest rates and how much affordability they can give you. One of the quick notes, if you refinanced or bought a home in October or sometime around there, you might be ready for a refinance a lower monthly payment. Have any questions for yourself or a client? Reach out to me anytime.
Thanks. Have a great weekend.