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A Conversation About Our Rising Rates

What are our interest rates doing, and how will that affect you?

Today I’m joined by J.C. Diaz from American Pacific Mortgage. We wanted to talk about what we expect interest rates to do this year and how that affects you.

Where were rates in December, and where are they now?

“As you may know, interest rates have crept up a bit. It’s a new year, and it’s a new market. A month ago, we were around 3% for interest rates. Now, rates are closer to 4%. Of course, your actual rate depends on a lot of things: credit, property type, etc.”

What’s driving the rise in rates?

“Lots of things. Low inventory is one, and that low inventory will probably be a challenge for buyers this year. Even though rates are rising, we’re still in a great environment compared to the last 10 or 15 years. The economy is also affecting rates since we’re just coming out of COVID. The most important thing is that it’s time to start looking at homes before rates creep up even more.

“The difference in rates can really affect your ability to buy.”

“Rates are back around where they were at the start of the pandemic. When they dropped a few years ago, it helped drive home price appreciation. Now that they’re rising again, that appreciation should slow, but we expect another high appreciation year despite that.”

That’s correct, so you need to take a look at your situation today. You might not be able to afford the same home you could a month ago. The difference in rates can really affect your ability to buy. Each profile will be affected differently, and that’s why we take the time to sit down and review them.

If you have any questions for J.C., feel free to call or email me, and I can put you in touch with him. Of course, you can always call or email me with any of your real estate questions too. I look forward to hearing from you.

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