Mortgage interest rates have shot up a bit recently. They’re about to shoot up a whole lot more.
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The Federal Reserve is the entity that sets interest rates and they meet on a quarterly basis. Last year, they increased interest rates twice in their four meetings.
When they met in the first quarter of this year, they increased their benchmark interest rates again by 0.25%. However, this move was widely anticipated by the market and mortgage rates aren’t expected to go up in the next few weeks. They are expected to increase rates at least two more times this year. What does this mean for buyers and sellers?
If you’re thinking about selling, now is the time to list so you can sell for the maximum amount of money possible before rates go up and decrease buying power. Right now, demand is high and inventory is low. That’s a perfect storm for sellers.
Now is the time to sell for max money.
If you’re looking to buy a home, increasing rates could greatly affect your buying power. Let’s say you are approved for a $300,000 loan right now with a 4.5% interest rate. If rates went up by just 1%, you would only be able to afford a $270,000 home at the same monthly mortgage payment. Take advantage of rates where they are now and lock in a low one before they go up even further.
If you have any questions for us or you’re interested in buying or selling a home, give us a call or send us an email. We would love to hear from you.
