Good morning! I hope you're well. We're back to the rain here after a very nice and sunny weekend. I was thinking this morning about mortgage interest rates and trending with the upcoming Presidential election in November. Thus the title of my post "Don't say I didn't tell you so!"
As many of you are aware, mortgage interest rates have been at or near all-time lows for quite some time now. The thing that usually happens after a new President is elected is interest rates rise. It's happened in the past and I expect it to happen again. I don't actually remember what happened last time but I fully expect interest rates to rise by as much as 1% after a Presidential winner is declared.
Another variable will be that it appears our economy is slowly improving. I know the Federal Reserve has indicated they probably won't touch short-term borrowing rates until sometime in 2014 but don't be surprised if they address rates sooner if inflation starts to rear its ugly head.
Here's my point. If you're a buyer, it benefits you to get off the dime and close on your purchase before the first part of November. Keep in mind if you're wanting to buy a distressed property (think short-sale or bank-owned) you should allow for extra time to close. After November, I think all bets are off if you plan on taking advantage of lower interest rates.
The other part of the equation is inventory. In the greater Seattle area, there really is no housing inventory (houses not condo's) under $200,000. And if there is, it is being either met with multiple offers or you wouldn't want to buy it anyway due to defects, etc. Lack of inventory could signal prices may start to improve. This is another reason to jump in now if you can.
Understand this isn't meant to be a sales pitch or anything like that. And I could be wrong although I usually don't stick my neck out without some thought. So if you're able to buy now I think it behooves you. After all, I wouldn't want to have to say "Don't say I didn't tell you so!" Have a great day!
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