There is a lot of speculation and uncertainty with so many things right now.

Housing is a big one!! 

People always ask me what I think the market is going to do…

The Truth?  Who knows right?  I wish I had my crystal ball.

 So lets look at what we do know.
We have started to see a huge change in the market giving us an idea of where we are headed.  
The Real Estate market is driven by supply, demand and interest rates.  And it  has been one of the most significant “sellers markets” I have seen in 24 years in this business.
That is changing!
A lot of buyers in the market have ‘stopped’ looking since interst rates have increased.  However current interest rates are still very good historically. 
Given an estimated 12% decrease in home value (depends on area) That is approx. $100k decrease. 
1- If you take a home that was listed at $850,000
3o year fixed
3.5% interest rate
1% property tax rate
$600 monthly hazard insurance

5% down payment 

Your payment is approx.
$4,384.00 (Without PMI)

If you take a home listed at $750,000

3o year fixed
5% interest rate
1% property tax rate
$600 monthly hazard insurance
5% Down payment
Your payment is approx. 

$4,500.00 (Without PMI) 

Which is only a difference of $116.00 per month.  

Now what about tax savings?
Even though you will be paying a slightly higher monthly payment that means paying more Interest!  Interest is tax deductible!

Carl Spiteri my "Go to lender" has put this example together for you.

3.5% 600K Purchase Price 20% down 3.636APR
4.5% 550K Purchase Price 20% down 4.651APR
5.5% 500K Purchase Price 20% down 5.669APR
6.0% 455K Purchase Price 20% down 6.182APR

*30 YEAR FIXED no balloon No PPP rate cannot increase


So bottom line…..There is absolutely no question with rising rates are effecting the market.  The supply and demand issue will be there.  So Don’t let the new rates push you away.  It is always a good time to buy Real Estate!


How do you know what your potential proceeds are?

Blake Peterson

Woods Real Estate Services
DRE# 01858305
Real Estate Sales and Property Management
619-550-9136 cell
619-342-7100 e-fax
930 W. Washington St Suite 1
San Diego, CA. 9210

How much could you afford on a new home with proceeds from your current home?

Carl Spiteri

Branch Manager – Mortgage Advisor
NMLS id 286890
(858) 526-3037
6310 Greenwich DR Suite 200 San Diego, CA 92122

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