Categories: Hoboken Condos
CNN Money says mortgage rates are “surging” since the election. The NY Times says rates climbed to a 16 month high, illustrating that the difference in a $400,000 mortgage would be an additional $700 a year in mortgage payment. Higher rates make buying a home more expensive. Perhaps with the limited inventory in Hoboken, it won’t matter. Prices will stay strong because of the demand pressure. If rates continue to rise, however, or if the economy softens, or if people start feeling nervous about the future, that could change.
When my clients ask for my view, my answer is invariably that they should be making a decision to buy a home based on much bigger factors such as the need for a tax write-off, the desire for more space or a better location or the potential for long-term appreciation. Given the unpredictable events of recent days, however, the next four years for real estate may be a rocky road. Like much else, we will have to see how it plays out.