We may be getting closer – a time when interest rates on home loans rise in the Santa Clarita real estate market. They already have. I know clients and friends and family who have refinanced or purchased in the uber-low 3% levels. Now, as we’re in the middle of 2015, we see rates at about 4% or higher.
Did you know that when rates rise 1% your purchasing power goes down by about 11%?
That means that if you were about to buy a home for $300,000, but before you did rates rose 1%… you may now only qualify for a home that costs about $267,000. In the Santa Clarita real estate market, that might mean the difference between a 3 bedroom condo and a 2 bedroom condo – thereby relegating some would-be homebuyers to continue renting to due space requirements.
AskRobertSCV TV! Check out our latest episode which touches on the issue of rising interest rates in the Santa Clarita real estate market. Will the Fed raise rates finally? There’s quite a bit of speculation that they will. Buy now if you can. Prices are (in most areas) still strong and going up as it’s a seller’s market. Sometimes it’s a hyper local issue – some Santa Clarita home communities are stronger than others. Call us here at the AskRobertSCV Team and let’s chat about your housing needs and potential for buying Santa Clarita real estate. We’d love to help! Call us at 661-373-2374 today. Weekends are good, too!
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