Mortgage Rates Are Rising, Buy A Home Before It’s Too Late

Mortgage rate hikes make it the perfect time to buy!

Put simply, the housing market is largely based on supply and demand. However, mortgage interest rates play a role in complicating this economic principle. Despite a desire to buy a home, when interest rates get too high, home buyers are unable to afford homeownership.

While over the long term, higher interest rates have the potential to slow the housing market, in the short term they seem to have the opposite effect. Because there’s a short window for affordability, buyers seize the opportunity when they can. This situation is beginning to occur in today’s market.

Advice for potential home buyers.

Interest rates have been raised and are expected to continue to increase. Freddie Mac has projected that rates will skyrocket to 4.6 percent by the fourth quarter of 2016. These hikes in interest rates directly affect your purchasing power. They make buying a home much more expensive as if you were to wait to buy, you’d be paying significantly more for the same house.

If you’ve been thinking about buying a home, now is the time to do so. Not only is it more affordable to do so, but home values are expected to increase too.

Advice for homeowners.

Rising interest rates aren’t all bad. As a consequence of rising interest rates, your home values are also expected to increase. Leading housing experts expect that home prices will rise by 5.2 percent within the next year. It’s a good time to stay put and enjoy your current home.

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