Will mortgages stay below 4%???
Every buyer I'm working with is wondering the same thing-
Will mortgages stay below 4%???
Expectations are that mortgage rates will rise later this year and next. With many areas showing rising prices as well, buyers need to focus on what's most important to them in a home to ensure they secure a property that meets their desires and financial budget.
Word on the street is no. Market watchers expect sub 4% homes loans to go away by summer. Lawrence Yun economist for the National Association of Realtors expects rates to hit 4.5% by the first half of 2014. Yun says, “my forecast is that higher inflation with force banks to charge extra interest to compensate for the loss of purchasing power in the money that consumers borrow.”
Yun also says that apartment rentals are rising and higher rents push up the Consumer Price Index and higher inflation will mean higher interest rates as lenders try to make a profit.
The Mortgage Bankers Association’s economist Mike Fratontoni forecasts rates rising even faster than Yun.
But don’t panic. Mortgage rates are not going to sky rocket. In 1990s they topped at 10% and in 1981 they hit 18.45%. 4.5% is still a bargain.
Contact me to help you. I will guide you through the entire home buying process from getting pre-approved with a lender, setting up property searches based on your needs and features that are important to you, scheduling times to view the homes you select, answering questions about the local market, writing an offer on your behalf and making sure you do not pay too much for your new home, setting up all inspections and being present for them to finally going to closing with you!
I work with several lenders that can assist you with your pre-approval and identifying just how much home you can afford and find a loan program that meets YOUR needs.
Buying a home is exciting! Call me today! I look forward to assisting you in all your real estate needs.
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