Thursday, May 26, 2022 / by Julie Winter-Paez
How Are Interest Rates Changing The Northern Wisconsin Real Estate Market?
You hear a lot about rising interest rates lately! How is this affecting the Northern Wisconsin Real Estate Market? Check out this video before you panic!
That's the next question we're going to tackle. And so far, we haven't seen them have a huge effect on the majority of our buyer pools. If anything, what it's doing is forcing the serious buyer to get off the fence, hop in the game, and start looking to buy a home. Because at the end of the day, if rates are going to continue to rise, why not get locked in now before they go any higher? And for the first time, a home buyer who is more than likely going to be most affected by this, it really is about affordability. That $360,000 property at a 4.75% interest rate was just about $1,900 a month. Now at 6%, it's about $2,200 a month.
So if you have a buyer or if you yourself as a buyer, are super cautious about what that payment is going to be. This is where you need to sit down with your realtor and talk about affordability. But for a lot of our second home owners, I think this is just going to push them off the fence and willing them to hop in and buy now before rates go any higher.
And again, historically, 6% is not high. So let's not panic about the interest rate. Back in the 80s, we saw 10%, 12%, and 14% interest rates. So really, historically, we are still in a really unique place with really low interest rates. I know it's a shock to some people because we've been low for such a long time. But don't let this hold you back. Get with your realtor, talk about what you can afford, hop back in the market and secure here yourself a property.
As always, we at the JWP Group would love to help. And if you're looking to get in or out of the Northwoods, give us a call. See you soon in the Northwoods.
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Find Homes Now: www.buysellloveupnorthwi.com
Find Out What Your Home Worth: Click here!