What Does Mortgage-Rate Flux Mean for Prospective Buyers?
Though the recent months have been an ideal time for homeowners to purchase new properties and take advantage of low mortgage lending rates, there is also a consistent rise in the mortgage market which poses questions for those who are still looking to purchase a home. Here at the Baton Rouge local movers, we want to help you understand what the changing market means for potential homeowners down the road.
It’s no secret that the past year or so has had some of the lowest mortgage lending rates on record. Alas, the only room for these rates to go is up. Rates are still at a bargain low, and the consistency that is growing in markets across the US will contribute to rates growing over time. As these rates rise, buyers will notice that their money will not go as far. In some areas, home prices have already jumped 35 percent, and lending rates have risen 1 percent since May 2012.
Increases in interest rates will leave many prospective buyers with little to no housing options in sight. Following the past few months of skyrocketing property sales, many areas are now faced with an inventory issue.
So what is the best route to take? Buy? Wait? Industry experts share that buying is ideal right now, but only if you are financially ready. Don’t buy a house solely based on the fact that prices will rise. If your budget is not in a place to take on a mortgage, or if you are unsure about where you want to be in the next five years, locking into purchasing a home may not be a wise choice for you at this time. Don’t buy something that you don’t truly love just because the news is telling you to go out and buy, buy, buy. Homes are not one size fits all and if what you are looking for is not available, we do not advise you to settle for the sake of buying a home.
Rates are difficult to predict, and to say with certainty what is to come would be falsified information. Here at All My Sons Baton Rouge, we are ready to help you move when the time is right for you.