There are a thousand reasons and specific circumstances that lead home buyers to decide when it is the best time to purchase a new house. Whether you’ve outgrown your first home, want to invest in property, or need to relocate to a new community or city, everyone wants to get the best possible deal on a new home. For many would-be buyers, that decision to buy can come down to one important factor: locking in a reasonable mortgage interest rate.
It’s only mid-year, but mortgage interest rates are once again creeping back up, leading experts to warn that those rates will continue to rise as 2017 marches on. Just speaking about the increasing mortgage interest rates makes many potential buyers fearful of making a home purchase, and it makes good sense to question whether now is the right time to commit.
That is why it may seem strange to hear that right now – literally, right now – is the time to scoop up a new home. Yes, mortgage interest rates are climbing from the extraordinarily low rates they were at in 2016, and though they are on the rise, they are currently not as high as all evidence suggests they will be.
One more factor to consider before you change your mind about buying a home in the current market is that homes are hot right now, but they are still priced low enough to meet buyer’s needs. That is another price point that will change as this year pushes on. This is especially true if the number of available homes shrinks, creating a situation where many buyers are looking to purchase a small handful of available homes whose prices will skyrocket in turn.
In the current market, home buyers are still in a good place to purchase, but as mortgage interest rates continue to rise, potential homeowners have less and less buying power. With rising rates comes a higher monthly mortgage payment, leaving many would-be buyers unable to meet their mortgage budget for a home they could have afforded just a few months earlier.
The rate can make such a difference that experts warn that even a .5% increase in interest rates can reduce your buying power by as much as 5% (or as much as 11.00% with a 1.00% increase).
While affordable home and mortgage interest rate is still a possibility for homes over the next few months, it is critical that potential buyers do their research and shop for the best mortgage rate possible while keeping a close eye on their credit scores.
If you are interested in discovering whether right now is the time for you to buy a home, contact different mortgage lenders and be sure to keep track of their mortgage interest rates and note any changes and special offers. Once you have a budget for a new home and financial purchasing plan in place, call the Realtors® at Thomas Group Realty who can help you find the perfect home that fits your needs so you can take advantage of the good interest rates before they rise to the point that it is too high to buy.