Today the federal reserve announced that it will be raising the federal fund rates .25% from 1.5% to 1.75%. The question is how will this affect you if you are buying a home or selling a home. Well, if you are a lucky home buyer that already locked in your interest rate with a mortgage lender you have nothing to worry about. But, if you are home shopping now and have not secured a loan and interest rate, you will most likely be affected. This is not a dramatic increase and if you do the math of $200,000 at 4.5% vs 4.75% the payment change is only $30 per month. Now if you are looking for a larger mortgage let's say $750,000, you are going to see a payment increase of $112 per month using those same example rates.
Take a minute and watch the video below courtesy of USA TODAY's Adam Shell where he tells us what to expect following the increase in interest rates on March 21.
Now keep in mind, there are many ways our team at Jennifer Lasco Real Estate works hard to save you money whether you are buying or selling a home. Do not stress about the recent rate hikes and think you missed the perfect opportunity to buy or sell. If you are searching for homes for sale near Fenton, Michigan or are ready to sell your home, call the Jennifer Lasco Real Estate team today to be sure you put the most money in your pocket.