1. What is up with the Space Force?
  2. Nat Geo Unveils Earth’s Natural Magic in ‘Yellowstone Live’
  3. 3M Creates State of Science Index Survey, Interview with 3M Corporate Scientist and Chief Science Advocate
  4. A New AI Algorithm Can Track Your Movements Through Walls
  5. See This Underwater Drone Capture Life Under the Sea
  6. Buying a Home in a Rising Interest Rate Environment
  7. Can A Fleet Of Tiny Flying Insects Change The World?
  8. This VR Exhibit Lets You Land On Mars
  9. Johnny Galecki’s ‘SciJinks’ Premieres On May 16 On Science Channel
  10. National Geographic Launches Open Explorer For Citizen Scientists
  11. A New Space Race to the Moon Has Begun
  12. This Heat Map Shows 8.7 Billion Strokes of Lightning
  13. The Ultimate Travel Bucket List for 2018 (and beyond)
  14. Watch the First Instagram Live with the International Space Station
  15. The International Space Station Gets A New Zero Gravity Printer
  16. Discovery Channel Uncovers Lost Treasures of Egypt
  17. Adam Savage Let’s Kids Show Off Their Mad Science Skills In Mythbusters Jr.
  18. Engineers Create A Tiny Wireless Injectable Biosensor
  19. Cruising Out of San Juan, Puerto Rico
  20. Watch: Time Lapse Camera Captures Construction of Rancho Mirage Observatory
  21. A Robotic Fish Uses A Nintendo Controller To Swim With A School Of Real Fish
  22. Water Could Shield Mars Bound Astronauts And Colonists From Harmful Radiation
  23. Interview With A Genius About National Geographic’s ‘Genius’
  24. Interview With Humans on Mars Advocate and Consultant to the Mars TV Series
  25. Is a self aware robot like Chappie possible? Yes, and soon, says scientist.
  26. Are We All Cyborgs? Interview with Futurist Jason Silva on ‘RoboCop’
  27. Mindfulness Meditation and OCD Interview with Steve Volk on Dr. Jeffrey Schwartz
  28. Interview with NASA Astronaut on ‘Gravity’ and the Dangers of Spacewalking
  29. Neuroscientist Discusses Consciousness Transfer and the Movie ‘Self/less’
Tuesday, September 18, 2018
  1. What is up with the Space Force?
  2. Nat Geo Unveils Earth’s Natural Magic in ‘Yellowstone Live’
  3. 3M Creates State of Science Index Survey, Interview with 3M Corporate Scientist and Chief Science Advocate
  4. A New AI Algorithm Can Track Your Movements Through Walls
  5. See This Underwater Drone Capture Life Under the Sea
  6. Buying a Home in a Rising Interest Rate Environment
  7. Can A Fleet Of Tiny Flying Insects Change The World?
  8. This VR Exhibit Lets You Land On Mars
  9. Johnny Galecki’s ‘SciJinks’ Premieres On May 16 On Science Channel
  10. National Geographic Launches Open Explorer For Citizen Scientists
  11. A New Space Race to the Moon Has Begun
  12. This Heat Map Shows 8.7 Billion Strokes of Lightning
  13. The Ultimate Travel Bucket List for 2018 (and beyond)
  14. Watch the First Instagram Live with the International Space Station
  15. The International Space Station Gets A New Zero Gravity Printer
  16. Discovery Channel Uncovers Lost Treasures of Egypt
  17. Adam Savage Let’s Kids Show Off Their Mad Science Skills In Mythbusters Jr.
  18. Engineers Create A Tiny Wireless Injectable Biosensor
  19. Cruising Out of San Juan, Puerto Rico
  20. Watch: Time Lapse Camera Captures Construction of Rancho Mirage Observatory
  21. A Robotic Fish Uses A Nintendo Controller To Swim With A School Of Real Fish
  22. Water Could Shield Mars Bound Astronauts And Colonists From Harmful Radiation
  23. Interview With A Genius About National Geographic’s ‘Genius’
  24. Interview With Humans on Mars Advocate and Consultant to the Mars TV Series
  25. Is a self aware robot like Chappie possible? Yes, and soon, says scientist.
  26. Are We All Cyborgs? Interview with Futurist Jason Silva on ‘RoboCop’
  27. Mindfulness Meditation and OCD Interview with Steve Volk on Dr. Jeffrey Schwartz
  28. Interview with NASA Astronaut on ‘Gravity’ and the Dangers of Spacewalking
  29. Neuroscientist Discusses Consciousness Transfer and the Movie ‘Self/less’
Buying a Home in a Rising Interest Rate Environment

Are you thinking of buying a home this year?  Well, the good news is that rates are still historically low.  In the early 1980s rates were as high as 18% on a 30-year fixed mortgage.

However, rates are on the rise, so, unless you intend on buying a home with cash, you’ll likely want to know what happens to your ability to buy a home when interest rates rise.

 

What happens when interest rates rise?

Whenever rates rise, we see a flurry of activity as buyers who were on the fence start rushing into the market.  With inventory already low, especially below $300,000, this results in competitive offer situations and an increase in home prices driven by demand.

What will happen to my ability to buy a home?

Rising interest rates directly impact your buying power.  For example, if you were qualified for a max payment of $1,432 per month, you could afford a $300,000 home at a 4% interest rate.  If you factor the same payment at a 5% interest rate, you would now only be able to purchase home for a max amount of $267,000.

What about home prices?

The limited housing inventory locally and nationally is driving prices up. As rates increase, demand increases and prices will further rise.  The high demand also drives multiple offers on properties and results in properties often selling for over list price.

While this flurry of buying activity is good for sellers now, as rates and values continue to rise, many buyers will get priced out of the market.  This especially impacts first time home buyers. Those buyers will delay their entry into the market or become entirely excluded from the process. As a consequence the market will then soften again as the pool of buyers shrinks and the inventory increases.  The plethora of apartments being built in the Valley is not accidental. Investors realize that this softening will come and the pool of available rentals will be ready and waiting to absorb those would-be homebuyers.

To those of you who are sellers, take in this information as well.  Prices will not increase forever. If you are thinking of selling, call as to discuss your options.  For some price sectors of the market I would say you want to sell now. For other sectors there is more time.

How Can A Realtor Help Me Buy A Home? 

This may be the most critical time to have an agent representing you on a purchase.  By the time unrepresented buyers call me via Zillow on a listing under $300k, that home has already had 6 contracts submitted and been sold. You don’t just need any Realtor for the competitive buying environment, you need an experienced Realtor to get your dream home.  We know of properties before they hit the market and also know how to write the offers that get accepted.

Should I Rush To Buy Now?

Buying a home is a major financial decision not one that you should rush into.  Purchasing an overpriced property that backs to a major street could be a far worse financial decision than waiting for the right property to come along – even if it costs a bit more.

John Karadsheh
John Karadsheh is the Designated Broker for KOR Properties. He has been Multi-Million Dollar producing agent for over 15 years and is an Accredited Buyers Representative (ABR) and Certified Residential Specialist (CRS). In 2014, John was voted the #1 Real Estate Agent in Arizona by Ranking Arizona. You can reach John at 480-568-8684 or visit his website at www.KORproperties.com.

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