Effects of Rising Interest Rates on Real Estate

An improved economy, strong job growth, wage growth and rising home values have contributed to a rising interest rate environment. This means home loans, car loans, credit cards and anything else in the U.S. that is has an interest rate attached to it will be affected. As an experienced real estate team with over 70+ years of combined experience, we’d like to discuss what impact rising interest rates have on St. Louis and St. Charles County, Missouri real estate.

Rising Interest Rate Effects on Homebuyers

For most homebuyers rising interest rates won’t change their decision to purchase a home. However it may cause a sense of urgency to find a home before rates rise again. It can also affect the amount of home homebuyers can purchase within a set budget.

Realtor.com® offers this example:
On a $300,000 house with a 30-year fixed-rate mortgage and 20 percent down payment, the difference between a 4 percent and 5 percent mortgage rate is $142 a month.   

Homebuyers concerned with rising rates may want to lock in a rate with a lender. This will guarantee the current rate for a set period of time. Also, homebuyers can help keep their personal rates lower by attending to their credit score. Be sure to pay bills on time and not overburden yourself with additional debt when considering buying a home.

Buyers can also try different mortgage products like new 40-year loans instead of traditional 30-year loans. While it allows you to buy more home, the longer term means you will be paying more for the home over the length of the mortgage. So it would be wise to refinance with a shorter-term mortgage when able to do so.

Rising Interest Rate Effects on Home Sellers

For home sellers, rising interest rates means the pool of buyers for your home could shrink. For example, if all other economic factors remain the same, an interest rate rise of 1 percent could decrease the purchasing power of homebuyers by up to 11 percent. However the current demand for homes by homebuyers in a real estate environment that is low on inventory means that buyers are finding creative ways to procure the home they want to buy despite interest rates.

Rising Interest Rate Effects on Homeowners

If you’re a homeowner who has been thinking of refinancing, you still have time. Interest rates are expected to climb gradually, so refinance or borrow sooner to avoid higher rates later on down the road. Also, borrowing costs are still relatively low. So it is a good time to get out of variable-rate debt and lock in fixed rates to insulate from further rate increases.

- - -

Ultimately, consumers don’t appear to be flinching much at rising interest rates. The U.S. economy has so much going for it that higher incomes and job availability could cover rising rates. Regardless of your current situation, if you are considering buying or selling a home in the current rising rate environment, speak with a member of The Boehmer Team. We have helped many homebuyers and sellers in all types of situations. Also, we can recommend mortgage loan experts in the St. Louis area that will help you get the best rate available for your needs.  

 

Great Deals on New Luxury Villas

Villa homes in the St. Louis area are known for their convenience, low maintenance, and well-kept communities. They are a place where one can enjoy life without as much time and work put into home maintenance and upkeep. While many villa homes are attached homes designed to best maintain privacy and security, some are beautiful stand-alone models. Currently in Wentzville, Missouri, you can find great deals on new luxury villas at The Villas At Renaissance Crossing being built by local homebuilder Bridgewater Communities, Your Villa Experts.

THE VILLAS AT RENAISSANCE CROSSING

A new luxury villa community now underway in Wentzville called The Villas at Renaissance Crossing offers deals on newly constructed villa homes that are worth checking out. This small community of twenty home sites offers the opportunity to build brand new 1,600-3,000 square-foot attached and freestanding luxury villa homes on two cul-de-sac streets. The community has quick access to highways I-64, 61 and I-70, is minutes from The Meadows (upscale shopping and dinning) and just 15 minutes from Chesterfield Valley. 

While these villa homes will be built with luxury features, amenities and style, they are currently being offered at prices that are such a great deal we had to write a blog about it. These villa homes are priced aggressively compared to most other villa homes being built in the area. The cost per square foot even rivals existing villas homes in the area. They are sure to produce tremendous value for homeowners who purchase at this community. Those who get in early at this community will enjoy the best pricing of all. Click here for more information about villa home prices at The Villas At Renaissance Crossing. 

Interior features included with these homes are: professionally designed gourmet kitchens, Aristokraft wood cabinets, built-in kitchen pantry, whirlpool appliance suite, first-floor laundry, spacious master bathroom with built-in linen closet, Moen chrome single handle faucets, walk-in closet, second bedroom/bathroom suite on first-floor, solid hardwood foyer with choice of colors, fiberglass entry door with dual sidelights, R-38 attic insulation,  low-e windows (except for window well windows), and 32" wide interior doorways.

Exterior features at The Villas At Renaissance Crossing include: natural stone and brick elevations, attractive roof pitches, architectural shingles, covered front porch with coach light, low maintenance vinyl siding and aluminum facia, iron address plaque, wrought iron mailboxes, fully sodded lawn with landscape package and shade tree, and a lawn sprinkler system on community water.

ABOUT THE BUILDER

Since 2003, St. Louis-based developer Bridgewater Communities has been designing and developing beautiful villa homes and communities in our area. Their work has earned them several Homer awards from the St. Louis Home Builders Association – the equivalent of an “Oscar” for the residential building industry. Click here to learn more about Bridgewater Communities and all of the homes they are constructing in our area. 

 - - -

Is moving on your mind? The members of The Boehmer Team are new construction experts that represent buyers in new home purchases. We understand the construction process, paperwork and other details that make building the home of your dreams easier.  If you have questions about homebuilders, new home communities in the St. Louis or St. Charles County, Missouri area, new homes that are completed and for sale, or building a new home, contact us or visit www.TheBoehmerTeam.com.