Interest rates rising! Is 5% really high?

Interest rates  rising!  Is 5% really high?

 

Interest rates have been really low for a long time now. They have crept up a little over the last few weeks. A few short weeks of weeks ago you could have gotten a mortgage with an interest rate around 3%.  Today you might have to pay closer to 5% for your mortgage.

 

“Experts” are saying this might cool off the hot Bellingham real estate market.  Some are saying that this increase in interest rates may scare some buyers away .  If you stop and think about it that this will just be a minor blip in the market.

 

Here’s a little perspective on interest rates. If you bought a home in say in 1984 the interest rate on that mortgage would have been about 12%

If you bought a home today  and your loan was for  $150,000 at 5% (including taxes and insurance) your payment would be just around $1000.

Take a look at this chart to get some perspective.


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