Daytona Beach Real Estate News – Mortgage Rates Up 1/2%
Mortgages rates are up 1/2% over the past two weeks. This is not good news for people in the market for Daytona Beach Homes or condos. The 30 year fixed conventional mortgage rate was at 5.8% two weeks ago. The rate today is 6.3%.
What does an increase of 1/2% mean when making your home buying decision. If $200,000 is financed, here’s how it breaks down:
$200,000 financed at 5.8% = $1,183.71 monthly payment
$200,000 financed at 6.4% = $1,241.86 monthly payment
The difference in payment is $58.15/month.
Looked at another way:
$200,000 financed at 5.8% = $1,183.71monthly payment
$191,000 financed at 6.3% = $1,185.98 monthly payment
Basically, if you are financing 80%, you get $11,250 less home for the same payment. ($250,000 vs. $238,750 at 80% financing)
Will prices adjust further downward because of increased interest rates? We can’t be certain, but at some point, inflation will cause prices to rise. We’ve recently been hearing about housing housing affordability putting the breaks on falling home prices. We believe that’s possible and for the first two weeks of June, the median Daytona Beach condos and homes sale price is up $15,000 over May and the average sale price is up about $14,000. This number could change, but median prices had been dropping for a while now. We’ll see what happens going forward.
For a more information and analysis, see our weekly Daytona Beach Real Estate Market Report.