Is the combination of the housing market going up and the interest rates going up at the same time causing you some panic? Try to remain calm.
After a few years of the interest rates being historically low, we knew it couldn't last forever. Even the current rate today is a great interest rate compared to a few years ago! These rates have buyers, sellers and even Realtors a little panicked and worried.
Here are three reasons not to panic!
1. Mortgage rates are still very low compared to years past Take a look at these rates over the last few years. As you can see, our rates today are still very low
- 2012: 3.66%
- 2011: 4.45%
- 2010: 4.69%
- 2009: 5.04%
- 2008: 6.03%
- 2000: 8.05%
- 1990: 10.13%
- 1980: 13.74%
2. A Slow increase in the interest rates won't affect the housing market
Historically, new home building and home sales aren't dramatically affected by a slow rise in the interest rates. The housing market is affected by many other factors such as, jobs, income and personal lifestyle changes. New home building has jumped to it's highest rates since April of 2006.
3. The majority of home buyers aren't going to panic over minor rate increases
There are some important questions to ask yourself (not considering the rates), if you are going to buy a home.
- Is this a good time for you to buy a home?
- Do you have the finances and affordability in place and will you qualify for a loan?
- Will you be able to stay in the same location for a few years?
It is a great time to purchase a home. Rates are still very low and housing prices are still affordable. If a half of a percent is going to affect your ability to buy a home, then perhaps you should consider buying a less expensive home.
If you need any help in purchasing a home, please feel free to call me at 602 647-6782 or visit my website. If you would like to speak with a lender, I can refer you to a few who could help answer any questions you may have.