With the spring real estate season in full swing, many potential homebuyers are anxiously anticipating what the market may do with regards to mortgage rates and are weighing their options for the right time to buy. Though interest rates can fluctuate regularly, there are some signs pointing to the fact that we are in the prime time to buy for 2018.
Interest Rates on The Rise
The Federal Reserve recently raised short-term interest rates, which is an indicator that the economy is strong. Though on a slight incline, interest rates are still fairly low and manageable when it comes to investing in real estate. If inflation continues to increase, we may see two or three rate hikes from the Federal Reserve throughout the remainder of the year, which will leave some investors with a slightly higher investment cost the longer they wait to buy.
Mortgage Rates Have Remained Steady but Rising Slightly
After rising during the first part of the year, mortgage rates have seemingly settled in during late March and April. It appears that the long-term lending markets have been unfazed by some of the tensions and headlines in the news, which could cause some volatility in the market.
As of last week, the U.S. mortgage rates were mixed with a slight upward trajectory from the steady rates of March and early April. The annual rate of baseline inflation accelerated to 2.1 percent in March, and therefore the Federal Reserve Chair may consider taking a more aggressive path on policy to protect the economy with a rise in rates as the year progresses.
Tensions Can Cause Rate Increases
With a recent attack on Syria, we did see a slight uptick in rates. Usually, international events that can affect the world markets will also have an effect on the markets at home. Because the U.S./China relations have improved, there is not an immediate danger of a trade war in the East, which plays into the favor of rates staying on course with where they are, at least for the short term.
Buy Now for Best Rates
Experts note that mortgage rates are still low, which significantly helps to support homebuyer affordability as the spring buying season ramps up. Now is the time to consider a big purchase such as a luxury home, when you may be using lending as a way to control costs. With projected increases throughout the rest of 2018, take advantage of spring selling season and low rates with your next real estate transaction.
For professional advice on all aspects of buying or selling real estate, please contact Audrey Ross at email@example.com or (305) 206-4003 or visit her at the Compass office located at 2550 South Bayshore Drive, in Coconut Grove.
Bell, C. (2018, April 16). Mortgage rates increase for Monday. Retrieved April 17, 2018, from https://www.bankrate.com/mortgages/rates/mortgage-rates-for-monday-april-16/
Orton, K. (2018, April 12). Mortgage rates stay the course despite trade tensions and global concerns. Retrieved April 17, 2018, from https://www.washingtonpost.com/news/where-we-live/wp/2018/04/12/mortgage-rates-stay-the-course-despite-trade-tensions-and-global-concerns/?utm_term=.3b34921a625d
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