Mortgage rates in San Antonio are averaging around 4.01% at the time of this post for a 30-year fixed mortgage loan. Rate increases are expected to rise to 4.80% according to Freddie Mac’s projection in the first quarter of 2017.
What does this mean to buyers?
It means some San Antonio buyers will be forced to settle for what they can afford if they wait too long.
The discussion about possible rising mortgage rates in San Antonio creates a buzz among savvy buyers looking to purchase property and lock in a good rate before the rate hike happens. Those buyers who do not understand what it means, I will explain.
Rising mortgage rates in San Antonio translates into less buying power. Your bottom line is affected by how much money you can borrow by the rate you can receive.
But how, you may asked?
The explanation is simple. After mortgage rates in San Antonio go up, your future monthly mortgage payments will be higher and the quality of home you want may be less if you wait too long. Buyers sitting on the sidelines and contemplating to buy or wait until Spring may miss out. Not only will you pay an increased mortgage rates in San Antonio against your loan; you are competing with many more buyers. Competing with more buyers is never a good thing. You may not win the house you love and possibly have to bid on less expensive homes in order to bid up.
Here’s an example of mortgage rates in San Antonio increasing look like to a monthly payment:
A home mortgage payment of $1,282/month will go to $1,427/month with a rate increase from 4.01% to 4.80%
(If mortgage rates in San Antonio increase again in the following quarter as we are hearing, that same house that was $1,282/month could easily cost you over $1,500 within a few quarters of a rate increase.)
Now I’m sure you understand, once mortgage rates in San Antonio increase the home you buy today will cost you more money for the same house in the near future.
I share this with everyone because assuming the mortgage rates in San Antonio increase, they will continue to increase making your buying power less and lowering the quality of home you can afford.
Hopefully you found this information helpful if you are deciding to buy now or wait.
I want to make sure everyone is fully informed about mortgage rates in San Antonio and what happens when they increase. Don’t miss out on buying while the mortgage rates in San Antonio are low.
(Please reply to this blog post under comments if you have any questions or comments to add to the discussion.)