So here you are, going about your business. Maybe you own a home, maybe you’re renting. Maybe you’re looking for the perfect house, thinking about selling the home you live in now, or pondering a refi.
So what will happen to mortgage rates? Although the Fed’s recent rate hike of .5o -.75% on short term loans won’t have a direct impact on long term mortgage rates (most borrowers still go for a traditional 30 year mortgage), lenders typically raise rates in advance of future increases. The Fed has promised to continue to raise rates in accordance with the strong state of the economy, and based on this information, lenders will raise long term mortgage rates.
Rates hit historic lows of 3.5% following the financial crisis, and you aren’t going to score a rate like that in the near future. The good news is though, rates are still awesome: 4.3% right now, on average. One interesting thing that happens when rates rise – because this may cause fewer people to refinance or make a home purchase, lenders sometimes start to relax their borrowing requirements.
Other factors that might impact your monthly finances: rising credit card rates, higher student loan payments and potentially higher car loan expenses…
So, bottom line, here’s what you need to know: interest rates are STILL awesome! And with a strong economy, chances are good you have a decent job, earning a decent wage, with pretty good job security. The Fed’s increase in short term rates means the economy is strong, and now is probably a great time for you to reach out to your favorite real estate expert to start your search for your right-size home – whether that’s an upsize, downsize, or finding a home that’s all yours.
Drop me a line! I’d love to help you search for a place to call home.
The Meyers Group