Rising interest rates may put buying a new home out of reach. I’ll explain why today.
I recently came across an article about how mortgage interest rates are on the rise. I’ve read articles like this in the past, but this article was a little different.
Inflation is firming because employers are under pressure to increase their wages. What does that mean if you plan on purchasing a property?
Rates have been hovering below 4%, but today they are up a little, at 4.04% for a 30-year, fixed-rate mortgage. This is still a relatively low, reasonable rate.
Still, with rates projected to increase over the course of 2018, along with a projected 4% rise in overall home values this year, many potential buyers may soon find themselves pushed out of the market in terms of affordability.
If you are thinking about securing a mortgage, you may want to get started sooner rather than later in order to take advantage of today’s relatively low interest rates and market opportunities.
If you need any help with preparing for that process, or have any questions regarding buying a new home, just give us a call or send us an email. We would be happy to help you!