As Interest Rates Rise, So Does Buyer Demand
With the spring market place proving to be competitive and the summer landscape anticipated to be the same, it’s important for buyers to take a look at interest rate trends to help make mortgage decisions. Rates have slightly lowered over the past month, with the average benchmark for a 30-year fixed mortgage ranging from 4.54 to 4.58 percent, however, rates are at their highest level in four years. As inventory moves quickly, there are a few things to consider as you work to ensure you are getting in at a good rate and making a sound real estate decision. New to the mortgage game? We’ve outlined a few key factors to keep in mind before you sign the dotted line:
While falling in love with a home can cause you to make quick decisions, it’s vital to work with your mortgage lender to see what the rates have been the past 30 days. As fears of increasing rates continues to be at the forefront of discussion, do your own research to avoid making a knee-jerk reaction and buying just to buy too quickly.
A great way to balance interest rates is to put the maximum amount down possible, paying the interest rate on the lowest amount of borrowed money as possible. There are a number of loan options if a 20% down conventional loan won’t work for you, but keep in mind, the more you borrow, the more the interest rates come into play.
The biggest question to ask yourself. Are you purchasing a home you can see yourself in and truly feel it is a fit for your current needs or are you letting the interest rates take control? Regardless of interest rates increasing or decreasing, the home that works best for you should drive your purchase decision.
Looking for more interest rate advice? We’d love to connect with you and provide you the latest information on rates as you search for your perfect home!