Mortgage interest rates trending upward - Lock in the Lower best rate
Interest rates have been going up-and-up and will continue to rise again and again. Unless you have had your head "in the sand" and/or are not keeping up with the latest Real Estate/Business News - you need to know that they (ie: interest rates) are are not going to come down any time soon. If anything, interest/mortgage rates are going to continue going up-and-up for the near foreseeable future. Many economists have been unable to agree as to how long the rates will continue to inflate more-and-more but a good guesstimate of periodic rate increases will continue for at least the next 16-months or so.
At this point-in-time: If you are thinking of Buying or refinancing, it is highly recommended that you "Get off the Fence" now - take action and "Lock in" the lowest mortgage rate that you possibly can.
I'm sure you know by now that the longer you wait the more expensive the rates and housing costs will be for you. Are inflationary times here? .... yes indeed inflation is here and we as an every-day-individual do not have the ability to curb inflation but we do have the ability to seek out and to lock in a low mortgage rate before it continues to trend upward again-and-again.
By now you maybe asking yourself and/or asking a Real Estate professional/consultant ... will the increase in mortgage rates have the effect of lowering the home prices and/or at least to put a STOP to the booming home price increases? A quick answer to that is that theoretically home prices usually go down the more the interest rates rise but currently the housing market is experiencing a phenomenon of both higher interest rates and higher home prices "to boot".
The current continuation of home price increases is not associated to any secret formula. Quite simply, the market is experiencing what is called "low inventory" (ie: a shortage of homes for sale). Combine that shortage with the large amount of "active" Buyers which was for a time outnumbering the quantity of available homes by about 15 to 20 times per. This indeed created a very competitive Buyer bidding war frenzy - thus putting an upward pressure on the price which in effect increased the home value.
The continuing increase in mortgage rates will definitely cause some buyers to leave their dream of buying a home and/or having to settle for something other and smaller than what they originally wanted.
In summary: With the knowledge of higher interest rates to come and the continued current home price increases - a large number of buyers are going to be and/or have been "priced out". With that said, do yourself a favor and do what you can to avoid being "priced out". So please do your due diligence for it is very important for you to shop around in order to get the best rate possible and when you find it and feel comfortable with it - then make sure you "Lock it in".
Oscar Castillo : BROKER - REALTOR