You’ve probably heard from multiple industry sources that mortgage rates will likely rise in 2017. There are several reasons why this is expected to occur:
The Market Has Strengthened
Interest rates were kept low for many years because of the declining market. Low rates were intended to help boost a troubled economy. The real estate market has improved significantly over the last few years. In fact, in many markets in MA and NH, home prices are returned to levels seen back in 2008. Multiple offer scenarios and homes selling for much higher than asking price is becoming the norm again. With all of these improvements, it is unlikely that rates will be kept low for much longer.
Fed board members have been predicting a rate hike. In fact, many economists have predicted it as well. Although past predictions have not always materialized, other economic indicators seem to add weight to this forecast.
Impact on MA Home Purchases
Even small fluctuations in interest rate directly impact home buyers and their mortgages. The impact is naturally greater for higher priced homes. If you are looking to purchase a home in 2017, it is important to know what monthly payment you qualify for and what the current interest rates are. Before making an offer to purchase a home, be sure to check the updated rates and confirm that it still falls within your qualification limits.
Mortgage Rates Will Likely Rise In 2017, So Act Now
With the expected increase in mortgage rates, the best time to buy is now. Take advantage of the current low interest rates and pre-spring home prices. Working with a good lender is critical to obtaining the best rates and terms possible for your mortgage. Contact me for a free mortgage pre-approval!