Twenty percent. That’s the magic number for a house down payment, or at least according to popular wisdom. Earlier in the 20th century, that might have been both true and achievable. But now,
Feds Raise Rates Again
Like last March, the Federal Reserve has approved another .25% rate hike. What does that mean for mortgage rates? It's hard to tell at this point. Average interest rates for a 30-year-fixed are hovering at just under 4%, and haven't moved much since in the seven months - even with increases in December and March.
Why is that? Most lenders have seen this coming for at least the past year, so they've incrementally increased their rates rather than shock the market with overnight increases.
With another two increases planed this year, expect those rates to slowly creep up to around 4.5% by Christmas. That might not be a deal breaker for a lot of people, but if want you're looking for is already maxing out your budget, there's no need to wait.
How else will this affect your wallet?
Michael Cunningham is a Real Estate Broker as well as the go-to tech and marketing wiz at Domicile Realty. A native of Tennessee, Michael arrived in Chapel Hill by way of Washington, DC where he help....