Are Mortage Rates in the Long Beach Island New Jersey Real Estate Market Rising?
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Are LBI Real Estate Mortgage Interest Rates Going to Increase? 
Are LBI Real Estate Mortgage Interest Rates Going to Increase? 
Are LBI Real Estate Mortgage Interest Rates Going to Increase?
Long Beach Island Real Estate
Since March of 2020, the Long Beach Island real estate market has seen unprecedented activity. Prices have risen, inventory has fallen, and interest rates have plummeted. The lower cost of borrowing money helped to offset the rise in prices in the LBI real estate market, which has created a unique opportunity for home buyers. This leads us to the question of are LBI real estate mortgage interest rates going to increase? The truth is, nobody knows for certain, but all signs seem to point to yes.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Are LBI Real Estate Mortgage Interest Rates Going to Increase?
Since it seems likely that mortgage rates in the LBI NJ real estate market will rise, it is helpful to see how this could impact the cost of owning a home on Long Beach Island. Let’s use a theoretical example of a $1,000,000 single-family home.
If a buyer purchases a home on Long Beach Island for $1,000,000 and pays a 3% interest rate with a 20% downpayment, his or her monthly mortgage payment will be about $3,400/month. If rates go up and prices fall (which is also rather unlikely given how insensitive the LBI real estate market is to interest rates), the same home could actually cost more to own. If the home price fell by $50,000 and the interest rates went up half a point, the monthly cost of ownership would be almost the same. If rates went up higher, say 0.75%-1%, then the same house would cost more to own each month, assuming a price reduction which is, again, unlikely.
Are Mortage Rates in the Long Beach Island New Jersey Real Estate Market Rising?
Nobody knows what the future of interest rates are, but most agree that they will go higher. Given that an increase of .5%-1% in interest rates will most likely not impact prices on Long Beach Island, it is clear that this is a “better” time to buy as your long-term cost of ownership will be much lower. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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