Key Takeaways:
- Mortgage rates are the lowest they’ve been in years, and this might be the lowest they’ll be for a while.
- Buying a house now is a good decision if you want to lock in a lower interest rate and ultimately pay less over time.
- Contact Linda Craft & Team if you’re interested in learning more about how to manage your mortgage concerns.
Buying a House…Now or Later?
Despite what you might be thinking—or wishing for—the mortgage rates now are lower than they have been in decades. However, that’s no reason to push off your plans to buy a house any longer. Buying a home now, while the mortgage rates are lower than they’ve been in a long time, may be the wisest choice. Let’s go through some reasons why!
The future rise of mortgage rates
The National Association of Realtors stated that in late September, the mortgage rate rose above 3% for the first time in three months. Though it dipped back down the next week, forecasts state that this might not last forever. Mortgage forecasters anticipate rates to rise steadily over the next few months. They even predict that it may reach up to 3.5% by the middle of 2022.
The effect of a mortgage rate rise on homebuyers
Even a half point increase can mean a lot for your monthly payment. Whenever the rate increases, your loan amount decreases. Buying a house in a time of lower mortgage rates means that borrowing your loan and paying it off is much more affordable.
Buying a house later next year, when your mortgage reaches the predicted rates, means that your monthly payment of a fixed-rate 15- or 30-year loan could increase by over $100. The different types of mortgage loans can make your payments during an increase even more complicated.
Don’t hesitate, just act!
Acting sooner rather than later is the important thing when it comes to buying your new house. Following the market forecasts and mortgage trends can also help. Recognizing trends and learning more about such an important aspect of your home buying experience can help you make great decisions when choosing to buy a house.
Want to Learn More?
Since mortgages are a necessity of owning a house but can often be confusing, Linda Craft & Team would love to be here for you! Check out all of the other resources on mortgages and home-buying we have here on our blog. Contact 919.235.0007 with any questions or to discuss working with us in your search for a new home!