Mortgage Rates Up Above 6%
Interest rates are above six percent for the first time since January 2003, and there are predictions that it will continue to rise to as much as 6.7% by next year.
The difference between a $250,000 30-year 6.0% and a 6.7% loan is over $100 per month. This difference could make a significant difference to the cash flow potential of an investment property, so this might be a good time to buy. On the other hand, the higher interest rates could cause a cooling in the house market, causing prices in some overheated markets to fall. That’s what makes real estate investing so much fun, there are so many variables to take into account.
If you haven’t already done so, this might also be a good time for a second mortgage or a mortgage refinance, before rates rise any higher.