If rates go up 1%, your budget goes down 11%

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Real Estate

When mortgage rates go up 1%, your budget goes down 11%. Prices are also projected to go up 5% this year.

Not a fan of percentages? Here's an example using dollars:

January 2022: Your budget is $400,000, and the home is $400,000. Buy it!
January 2023: Your budget is now $365,000 thanks to a 1% rate hike, and that same home is worth $420,000. 

30-year fixed mortgage rates are projected to get to 4% by the end of the year, and home prices are going up another 5%. The right time to buy a home was 5 years ago. That same sentence was true 5 years ago. Don't get caught waiting and missing out. There's a reason big investors are going heavy on real estate right now.

Email: somersestates@gmail.com or adam@dimora.com
Phone: 248-735-7297

Adam Somers is a Metro Detroit and Ann Arbor Real Estate Agent who specializes in Plymouth, Northville, Novi, Canton, South Lyon, Brighton, Milford, Livonia, and Farmington. Helping first time buyers, move up buyers, and downsizing buyers find their next home, as well as homeowners who are selling get the best price during their home sale.