Interest rates are going up, however it is still the best time to buy a house as outlined in the graph below. With a 4.5% rate, 27% of your monthly payment goes to principle, whereas at a 7% rate, only 9% goes towards equity. (*Freddie Mac 30 year). Walnut Creek’s inventory increased May-June from 95 to 125 homes a 32% jump. During the same period the median listing price in Walnut Creek decreased 5%. What does this mean in the next few months? Most likely we will see a more level playing field that doesn’t favor the seller as it has in the past year. Please see the comparative market analysis below for what is going on in our own Parkmead area.
|
Price
|
Rate*
|
Principle & Interest
|
|
|
2002
|
600,000
|
6.99
|
3,987.79
|
|
Today
|
600,000
|
4.40
|
3,004.57
|
|
Monthly Savings
|
983.22
|