Mortgage rates are changing

Your dad’s telling you to buy a house right now. Your Aunt Jane in North Dakota is telling you to buy a house right now. The man you bumped into at the coffee shop is telling you to buy a house right now. Mortgage rates are going up, they all keep crying.

But, what’s really going on with mortgage rates?

Heather Long’s recent CNN Money article, “Why mortgage rates are NOT going up now, but…” takes a close look at just that question. Here are some of the key takeaways:

  • The Federal Reserve raised interest rates — a tad — off their historic lows.
  • Current rates on a 30-year mortgage are still incredibly low by historic standards and aren’t expected to rise significantly anytime soon.
  • If rates do rise substantially, home prices are likely to come down.
  • For current homeowners, now is a good time to refinance.

The Bottom Line

For real estate investment companies and house flippers, a slight rise in mortgage interest rates could significantly impact business. As an individual homeowner, the right time to buy a house is less about what interest rate you can secure and more about determining the right time in your life.

Rushing into homeownership simply to secure a slightly lower interest rate isn’t a recipe for success. As you prepare to buy, take a close look at your finances. Make sure you have enough for a down payment, closing costs, AND a rainy day fund.

Ask yourself where you plan to be in five years? Do you plan to pick up and move to an entirely new state? Then buying might be more expensive than renting. But, if you plan to stay in the Seattle area for a significant amount of time, buying is often the more affordable option.

At Fairway Kirkland, our loan officers don’t just help you secure a mortgage. They help you secure the right mortgage at the right time. Contact one of our loan officers today to discuss your short term and long term goals for home ownership.