The Effect on Mortgage Rates and Housing
The Federal Reserve increased interest rates on Wednesday, but the increase does not warrant any rash decisions in the housing market. Almost all experts agree interest rates on 30-year mortgages will increase, but that increase will take some time to occur, and when the increase does occur, it will be gradual. The Chief Economist at Realtor.com, Jonathan Smoke, expects a half-percent (.50%) increase on mortgage rates within the next twelve months (Nerdwallet). Some sources say that the increase will come sooner: Quicken Loans CEO Bill Emerson said Thursday that “people looking to buy a house or refinance an existing home loan have a three to six month window before mortgage rates move appreciably higher” he also added that now is a prime opportunity to “take advantage of still very, very historic low mortgage rates” (CNBC). Additionally, homeowners with adjustable-rate mortgages should consider switching to a fixed-rate options. If you’re in the market to buy a home, it is important to speak to a mortgage representative to learn how fluctuations in interest rates may change the loan amount you can qualify for (Nerdwallet). To get in touch with a mortgage representative, contact Cheryl Maddaluna who is happy to provide you with recommendations of experts in the home mortgage field. *
*All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Information herein is not guaranteed to be accurate nor complete. All investments involve some degree of risk. The poster of this information will not be held liable for any loss or damage caused by reliance on the information herein.