I recently sat down with Nick Street, a branch manager with Mountain West Financial. We had a great conversation about mortgages, interest rates, and more. For part one of our conversation, we talked about the current state of interest rates and what the future holds for them.
Nick has been in the mortgage industry since 2004, so he has a wealth of knowledge to share. One of the things he has taken notice of in the last few years is that many people aren’t aware that interest rates are affected by how our economy is doing. When the economy is suffering, rates are going to be pushed down. When our economy is doing well, like it is right now, you will start to see rates increase.
Interest rates greatly affect buying power in this market. If you’re approved for a $300,000 home right now with current interest rates, you would only be able to afford a $270,000 home if rates went up by just 1%.
Right now is actually a great time to buy for a number of reasons. For one, interest rates remain historically low. While it’s true they aren’t as low as they were last summer, when you look at historical data it’s clear that rates are still just about as low as they ever have been. Our market specifically gives buyers a lot of advantages that renters don’t have. Sacramento is a fairly affordable market as well.
In part two, we’ll talk more with Nick about all things mortgage. If you have any questions for Nick, you can reach him at 916.262.7631 or at Nick.Street@MWFInc.com. If you have any questions for us in the meantime, give us a call or send us an email. We look forward to hearing from you.