Low Interest Rates Make
Buying in Seattle a Smart Move
In This Post
Interest rate comparison and opportunities.
According to an Associated Press article in today’s Seattle Times interest rates are at a yearly low and only slightly above last year’s low of 4.84%. This was not how the predictions were running two months ago when the federal government stopped buying mortgage backed securities. It seems the private sector has taken over.
The article attributes the low rates to a concern over the global economy, with special emphasis in the poor financial condition of Greece, Spain and some other European countries. I don’t pretend to know a thing about global finance, but I do recognize a good deal when I see one.
If you have been thinking about buying a home, or an investment property in the greater Seattle area, I’m interested in help you accomplish that goal. If you are under 30 and wondering what the big deal is about interest rates, you should know that home mortgage rates in the 1980’s went as high as 18%.
For comparison sake, a $300,000 loan at 5% interest amortized over 30 years would have a monthly principle and interest payment of $1,610. If the interest were 10% the payment would be $2,633, and should rates ever go to 18% again that same $300,000 loan might cost you $4,521 each and every month for 30 years.
The tax credit may be gone but buying a house with rates like these will pay you dividends for years to come. You'll be holding on to more of your hard earned money by not waiting too long. Don't get caught by rising rates.
For more information on properties for sale in the Seattle area, I’m just a phone call or email away.
If you are a seller in the Seattle area, spring and summer are the best selling seasons. Your property is worth more when buyers have more buying power. When rates rise, home values often decline. Take advantage of the great rates now available by getting into the market.