Is now a good time to buy a home, or should you wait? I’ve got the answer for you in today’s video.
A great mentor of mine once told me, “You don’t wait to buy real estate. You buy real estate and wait.” It seems that all we hear about in today’s current market is whether or not to buy now. So, when is it a good time to buy, and how does the Fed’s most recent rate hike play into that?
First, the trend has been that since the Fed began raising rates last year, interest rates for mortgages have actually gone down. If that continues, it could mean lower interest rates for mortgages in the short term.
The economy continues to do well. Unemployment and inflation rates are still low, which gives the Federal Reserve more confidence to raise rates at this point.
Finally, the Fed rate hike, which is usually meant to cool the economy, might actually do the opposite. Since the Fed starting raising the federal funds rate in December 2016, mortgages are actually up 2.5% year over year. This means that more people are applying for mortgages now than they were last year.
So, should you wait to buy a house? While the price of homes continues to rise, mortgage rates are still low, making it more affordable than ever to lock in that great mortgage rate and get into the home of your dreams.
If you have any other questions, or you’re looking to buy or sell a home, please give me a call. I look forward to helping you!