No question, higher interest rates are going to affect the market. We hear rates will hover around 6% but likely won’t return to under 4%. This will change the buying power significantly. Special finance options and programs will help. Higher bracket buyers will likely be able to utilize their other resources to make up the difference. Buyers who were on the fence, or happy at their current living situation will decide not to move. About 10% of the buyers will no longer qualify simply based on the higher rates. Inventory is still low and buyers still want to own a home – we are hopeful these two factors will balance out the increase.
30 Year Fix Conv 4 3/8%
15 Year Fix Conv 3 1/2%
30 Year Fixed FHA4 1/4 %
30 Year Fix Jumbo5 1/8%
5 Yr Jumbo Arm 2 1/2%