Interest rates have come down ahead of the Fed meeting on September 18th in anticipation that they will drop rates. While this is exciting news for our Crystal Coast real estate market, Mary Cheatham explains how buyers and sellers can prepare for this announcement. Click ‘PLAY' below for all the details!
Here's how buyers and sellers can prepare for the drop in interest rates announcement:
For Buyers: What we can expect is that this drop in interest rates is going to bring more buyers to the market which can lead to higher sale prices due to more competition and higher demand.
These higher sale prices can negate any savings that you have from getting a slightly lower interest rate. For example:
- A $500,000 home with a 6% interest rate (assuming a 20% down payment and NOT including taxes, insurance, additional fees) is approximately $2,885/month.
- A $500,000 home with a 5.75% interest rate (also assuming a 20% down payment and NOT including taxes, insurance, additional fees) is approximately $2,821/month.
- With higher demand, we know this could create multi-offer situations that ultimately drive up sale prices. Your $64/month in savings with a slightly lower interest rate could be negated by having to pay a higher sale price on the same home once more competition comes to the market. A $500,000 home would only have to increase to $511,000 to negate your savings in a .25% interest rate drop.
Buyers should act now and take advantage of the already lowered interest rates in anticipation of the September 18th announcement BEFORE more buyers flood the market and potentially cause sale prices to increase.
For Sellers: It's time to get your home ready for a fall sale when additional buyers enter the market all vying for properties just like yours.
We can help with both.
Sellers: click HERE to see what your home could be worth in today's market!
Buyers: click HERE to reach out to our buy team and begin your search!