Interest Rates are rising – Is this a good time to buy a home?
JUN
15, 2022
Everyone knows, overall, home prices have been rising together with interest rates. This has been a moving market, and it is representative of our local economy and national financial trends.
Is this a good time to buy a home?
The answer will always be depending on your current situation. If you are renting, essentially you are paying 100% to your landlord and paying 6% even 7% for a mortgage still a better move for you.
While the mortgage rate has risen, it is still not unreasonable a higher percent interest on your home loan and let me tell you why?
At a recent point in time, several months ago, interest rates were around 3.5% but are now around 5.5%, so the rate has risen much faster than expected. But, at some point, this too shall pass, and the market will stabilize with a tendency to normalcy once again.
The 30 year fixed rate has been below 4 percent. After the pandemic hit, the 30-year fixed rate stayed around the same for a few months. This is because the Federal Reserve has made a big push to keep rates low to avoid a recession.
Today, the Fed will have to increase them again and hope that our economy will be able to jump over our current economic conditions for more stability on prices.
Maxus Realty Group Agents are local specialists with knowledge to help you buy and sell the right home, at the right price.
We are passionate about you as a client, we will always protect your best interests just because it's the only way we do business day in and day out.
Today, we'll talk about Interest Rates are rising – Is this a good time to buy a home?
In the last year, inflation began to rise due to a number of reasons. This pushed the Federal Reserve to begin raising interest rates to stop the inflationary cycle. The Federal Reserve's decision to increase interest rates has led to higher mortgage rates. Just last week, the average interest rate for 30-year, fixed-rate, mortgages with balances of $647,200 or less increased to 5.65 percent from 5.40 percent.
In some cases, homebuyers may want to look at different housing options such as condos or townhomes to offset high interest rates, but one thing is for certain, the interest rates of a monthly mortgage are always much better than paying 100% or a monthly payment to a landlord
A good real estate agent will help you ask the right questions before buying a home. For example, You may be paying attention to the interest rates when you should be asking yourself"
"How much home should I buy, given all of my short and long-term goals and objectives?"
…and that’s when you need a guidance from a true real estate professional
Our commitment as your real estate professional is to help you find your dream home at the right timing for you.
It's the biggest purchase of your life, and can assure you that even small mistakes can be costly. BEWARE, technology changes almost daily and I can help you pinpoint all the homes for sale near your location points. I have access to over 18 million properties from hundreds of locations, including Government properties, action homes, VA homes, HUD Properties and all available private houses for sale in between.
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Fernando Herboso Broker 301-246-0001
