Interest rates are on the rise – is it time to buy? Many real estate investors and homeowners are asking this very question. Economists say that the time to buy is now more than ever with interest rates that are only expected to keep climbing. They are urging those in the market for a new home and are currently able to buy a home to act as quickly as they can.
If you were in the market for a new home over the past few months and decided to wait for a better deal, you could have potentially cost yourself hundreds to thousands of dollars per month in mortgage payments! Buying a home in today's market can save you a ton of money and secure you a lower interest rate that makes home ownership much more affordable.
Since May of 2013 interest rates have already increased by more than 1 percent. Economists don't expect this trend to end any time soon. Rather, they predict that rates will continue to rise through the rest of the year and into 2014. According to the Mortgage Bankers Association, interest rates for a 30-year, fixed-rate mortgage averaged 3.59 percent all the way back in May!
Increasing interest rates that occur over a substantial time period, combined with steadily increasing home prices are all red flags for economists and real estate investors. Despite rising interest rates, current rates are still low historically and the increases that we are seeing every month are not minimal--they rise at an average of between 1 and 2 percent EACH month. This means that every month, every day you wait to buy your dream home, you are literally flushing money down the toilet.
Believe it or not, it's actually more affordable for people to buy a home today than it has been in decades. Not only that, but the National Association of Realtors reported recently that home ownership is more affordable now than it has been since 1970--the year the NAR began tracking the information!