Everyone seems to have the “answer” on interest rates for homebuyers; some say they will continue to rise, others say they have peaked and will decline. We pull information from a variety of sources, NAR, Goldman Sachs, Wells Fargo, Housing Wire, the Walls Street Journal and we could go on. Interesting enough, there is no consensus among them all! The fact is that interest rates were kept artificially low due to government intervention and now they are moving back to historically normal levels. Where they settle is uncertain but the real question is how does this affect your homebuying decision. The four questions you need to ask yourself are:
1) is the home I want available today at a price that meets our budget
2) do you feel the market over time in the area will continue to increase in value
3) how long do we plan to stay in the house? if more than 5 years then there is always the possibility that interest rates will decline and you can refinance. And if they do not decline won’t you look like a genius for locking in the rate you got!
4) what type loan will suit me best, fixed rate, adjustable, VA?
We will talk more about the homebuying process in the next few weeks, but ask yourself these four questions as part of your decision making process. And while you are at it you can sign up for EAlerts and get information on homes coming on the market in the price range and location you desire. Send us an email and we will walk you through how do do it, or we can set it up for you.