Mortgage financing giant, Freddie Mac, recently reported that average rates for 30-year fixed rate mortgages are at a two-year high – up to 4.51 percent from the previous week’s 4.29 percent rate. The rates climbed sharply after they had reached a near record low of 3.35 percent in early May. The latest headlines focused on increasing interest rates may unnerve some, but savvy home buyers know that this is not news to be fearful of – this is news to act upon.
As rates go up, the amount you can afford to put toward a property goes down, and thus your buying power is weakened. A 1 percent increase will cost you more than you think in the long run – so waiting longer isn’t wise, particularly because interest rates are cyclical and they move up and down in very long cycles. Rates are still very low by historical standards, but the question remains: will they stay this way and for how long?
That more than 1 percent leap can be startling – and some potential buyers may find themselves pulling out of the game in hopes that rates will drop again soon. According to a recent survey by Trulia among customers who plan to buy a home, 41 percent report that their chief concern is that mortgage rates would rise before they purchased the property. The secret therein is that as other buyers drop out of the market, your value to sellers increases. The window of opportunity is now when sellers are motivated and rates are still low making your overall buying power strong.
Montgomery County has had an incredible recovery from the housing crisis of the past few years and is among the strongest in the state. Now is a great time to lock in a home in a sought-after area at a low rate.
The Speicher Group is here to help you make the leap today to find your ideal home, so that you can lock in the lowest rate possible and save money while living your dream.