Mortgage Rates on the Rise

The Bee reported that real estate is going to cost our Sacramento home buyers a little more now that interest rates have been on the rise. The average interest rate on a home mortgage is now 6.53% - and that is for a 30 year fixed rate. Last week, the same rate for a 30 year fixed mortgage was 6.42% This might be an indication that the buyer's market is beginning to come to an end. Or is it?

Here's what I found: To buy an average home in Sacramento costs about $300,000 all statistics aside. With a 20% down payment if you got a mortgage fixed for 30 years at 6% your monthly payments would be $1438.92 (without impounding for taxes and insurance. However, if interest rates crept up to 7% that same home with the same down payment would cost you about $150 more a month to purchase at monthly payments of $1596.73 Whether that seems like a fair trade to you to own real estate in Sacramento is for you to decide.

However, home prices are still low and there are bargains to be found out there, especially if you are searching for bank-owned properties and are willing to build some sweat equity.