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What a Rise in Mortgage Rates Can Mean for You
After months of record-low rates in the world of home mortgages, several reliable sources have been reporting that a rate increase is on the way for the 30-year-fixed mortgage. According to Bankrate.com, "Mortgage rates floated higher this week after the Federal Reserve signaled that at least one interest rate hike is on its way later this year. The uptick comes as the housing market's momentum strengthens."
Mortgage applications and home sales continue to rise as people fear the end of low rates. Bankrate.com also reports that "sales of new homes rose 2.2% last month to the highest level in seven years. Boosted by demand for single-family homes, existing-home sales increased 5.1% in May, clocking in a 9.2% year-over-year gain. The median home price also rose 7.9% from the previous year to $228,700, the National Association of Realtors reported June 22."
There's no such thing as a "perfect" time to buy, but if you've been thinking of buying a home in the Brentwood, Tenn., area, taking advantage of low rates is still a great idea. And if you're going to be selling a home, the rise in the median home price is really great news for your equity. There's no way to predict exactly what will happen in the future, so you need to do what is best for you and your family right now. According to the Washington Post, "Although rates are rising, they remain near their all-time lows. The 30-year fixed-rate average hasn't been above 5 percent since February 2011, and it hasn't topped 6 percent since November 2008." Even if rates do go up, there's always a chance they will go back down, and refinancing is always an option if you need it in the future.
The bottom line is that you shouldn't panic and feel like you have to make a hasty decision. Call me and let's walk through your options. I will help connect you with a great mortgage lender who will be happy to help you if you're ready to make a big move.