While most of us are happy to see the end of the foreclosure crisis and an improved national economy, the truth of the matter is that, while buyers were able to land some amazing deals during the recession, their current situation isn’t looking as promising. Plain and simple, in the majority of markets, the number of people searching for homes far exceeds the available inventory, which means many buyers are having a difficult time finding a home that truly meets their needs.
In the last few years, buyers were able to score big with low mortgage rates; however, the real estate industry—as well as the federal government—made no secret of the fact that rates were expected to go up in 2015.
As it stands right now, mortgages are up 30 to 40 points from last year’s low. While the actual math behind these numbers may prove confusing, suffice it to say that a higher mortgage rate will increase your monthly payment, which may potentially limit the type of home you can purchase. Present numbers would suggest that most buyers can expect an additional $40 on their monthly statement, which may prove to be a lot for many middle- and lower-income households.
Therefore, if your goal is to secure a suitable home at the lowest price possible, it’s worth entering the real estate market sooner rather than later since rates are expected to keep going up. To get things moving, it’s important to utilize the services of an experienced real estate agent, as well as a reputable mortgage lender who can help you look for discounts, government programs, and other savings during the application process.
With increasing mortgage rates, you’ll need all the savings you can get, so surrounding yourself with a solid team is extremely important.
To learn more about finding your dream home before the mortgage rates get even higher, please feel free to contact me. I’d love to offer my advice or provide you with referrals for several qualified mortgage professionals.
Marie Dinsmore | The Dinsmore Team | www.DinsmoreTeam.com | 770-712-7789
