Rising Interest Rates and San Diego Home Prices

Most home buyers have probably heard by now, mortgage interest rates are slowly on the rise in San Diego.   What many people do not understand is just a small rise in rates can have a big impact on your monthly payment.  The chart below, provided by the California Association of Realtors, provides a good snapshot of how quickly your monthly bottom line can increase with rate increases.

In addition to, rising interest rates have not adversely affected home prices in San Diego.  Month over month we continue to see increase appreciation in home values as demand for real estate continues to remain at a historical highs.  If you are waiting for prices to come down before entering San Diego’s real estate market, I’d encourage you to re-think your strategy.  Most experts to do predict a downturn in pricing for several more years but they do agree interest rate will continue to increase.  Take advantage of todays affordable interest rates; over the life of your home loan, you will be glad you did.

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