Mortgage Interest Rates are Still Going Up… Should You Wait to Buy?

By
Real Estate Agent with YourStories Realty Group MA# 9517963

Mortgage Interest Rates are Still Going Up… Should You Wait to Buy? This is the headline, but shouldn't it be Should you wait to Sell?  Interest rates affect both the buying and the selling of real estate, they are intertwined now and forever.  Let us take a step back away from the rates for a quick minute and just look at the product, the house.  A house sells for the price a ready, willing and able buyer is willing to pay for it. The Seller, nor his Agent dictate the price, they base it on existing sales and perceived value; it is the buyer who determines the price.  Mortgage Interest Rates are Still Going Up… Should You Wait to Buy? |Simplifying The Market

Mortgage interest rates, as reported by Freddie Mac, have increased by close to a quarter of a percent over the last several weeks. Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors are all calling for mortgage rates to rise another quarter of a percent by next year.

In addition to the predictions from the four major reporting agencies mentioned above, the Federal Open Market Committee recently voted “unanimously to approve a 1/4 percentage point increase in the primary credit rate to 2.75 percent.” Historically, an increase in the primary credit rate has translated to an overall jump in mortgage interest rates as well.

This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 4%. However, we must realize that current rates are still at historic lows.

Here is a chart showing the average mortgage interest rate over the last several decades:

Mortgage Interest Rates are Still Going Up… Should You Wait to Buy? |Simplifying The Market

Bottom Line

Though you may have missed the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

Posted by

Larry Lawfer, Realtor®YourStories Realty, It's all about you,

Larry Lawfer

Partner

Realtor®, Director of Marketing

YourStories Realty Group powered by Castles Unlimited®

837 Beacon St

Newton, MA 02459

larry@yourstoriesrealty.com, 617-774-8292

Comments (6)

Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

We are still blessed the rates are under 5%

 Federal Open Market Committee recently voted “unanimously to approve a 1/4 percentage point increase in the primary credit rate to 2.75 percent.” Historically, an increase in the primary credit rate has translated to an overall jump in mortgage interest rates as well. This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 4%.

Oct 04, 2018 03:51 AM
Kristine Ginsberg
Elite Staging and Redesign, LLC - Short Hills, NJ
NJ Home Stager

Hi Larry! We were lucky to have refinanced at an all-time low at 3.25% in NJ. We are very fortunate considering we were at 7.25 originally. Great info - thanks for sharing. 

Oct 04, 2018 04:02 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Larry. When one wants to buy it is time to buy and the same goes for selling. Our artificially low rates over the past few years have spoiled most. Enjoy your day.

Oct 04, 2018 04:54 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Great advice to buyers - we are all spoiled with those low intereset rates over the last few years. 

Oct 04, 2018 05:26 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

Sham Reddy 'Tis true, some of the oldster's here remember double digit interest rates. To the buyers of today they feel as though they may miss locking in a great rate and with more inventory available and a normal market returning from the strong Seller's market now is the time to get out and buy.

Kristine Ginsberg Congrats, we too saw that as an opportunity a couple of years ago and lucky us. Sure looks like you enjoyed your Paris trip recently.

Oct 04, 2018 06:06 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

Wayne Martin spoiled we have been and spoiled we continue to be for this year. Thanks for your wisdom.

Lise Howe read above and we all know that they will continue to go up over the end of this year and next.  I hope both buyers and sellers see this as their time of opportunity.  Make it a great day

Oct 04, 2018 06:12 AM