ATTENTION CHELSEA LOVERS! Here is our first look at the New Condo being developed at 555 West 23rd Street in Chelsea.
It looks like these units will be priced from about $900-$1400+ a square foot. Not bad for a brand new development in this very expensive NYC neighborhood.
More info to come as I get it in.
A: Probably Not. The fed looks to raise rates only a 2-3 more times from where we are now, and will probably stop when prime is near 4.25% - 4.50%. That should keep 30YR mortgage rates at/under 7%.
There are 3 Costs that affect every homeowner and directly totals what your monthly payments will be. They are:
MORTGAGE COST + maintenance COST + PROPERTY TAXES COST = Monthly Payment
Your MORTGAGE COST is directly related to your credit score which will determine what rate you will eventually be able to get. The higher your credit score, the better the interest rate you can get.
Fed Chairman Alan Greenspan has raised interest rates aggressively over the past 2 years, in an effort to slow the economy and keep inflation in check. While we are still at historically LOW interest rate levels, they are no where near the level they were at 18 months ago. So, where are they going now? My thought is:
With the economy still growing and inflation still a concern (thanks oil prices!), it is fair to say that Greenspan & Co. will continue to raise interest rates looking forward.
But by how much? This is the important question that homeowners should be looking into. Look for the fed to raise interest rates AT LEAST by another 1/4 point at their next meeting. After this rate hike, we will be very close to the END of the rate hike campaign that Mr. Greenspan has orchestrated over the past few years. If this rings true, mortgage interest rates will remain around 6%-6.25% or so for the forseeable future, and will continue to provide for a healthy environment for new homebuyers.
At this point, the answer to the main question has to be:
NO. You Should NOT Rush To Buy A New Home Just Because of Interest Rates. Most Likely, They Are At or Near The Top Right Now.