January 20, 2014

It's Time to List Your Property ~ or Buy That House!

If you are considering putting your house or commercial property on the market ~ or thinking about buying that home you’ve been eyeing, now may be the crucial time to make that move! Interest rates are increasing in 2014!

Mortgage rates first spiked in May 2013 after the Fed signaled it was considering pulling back its bond-buying program meant to keep a lid on long-term interest rates. The housing market initially stumbled, but started to recover once the central bank decided against any changes to the stimulus effort throughout the summer and into the fall. Mortgage rates are still at historical lows, but they are already starting to creep upward once again.

The rate on the 30-year fixed loan, the most popular type of mortgage, is more than a percentage point higher than a year ago and at its highest level in more than three months.

The average 30-year fixed rate mortgage is at 4.48%, its highest level since mid-September. The interest rate on U.S. Treasurys is also going up. At the end of December 2013, the yield on 10-year notes hit 3%, its highest level since September and the second time this year it has reached that mark. That threshold could signal higher interest rates ahead because it is used as a reference point for the cost of borrowed money for U.S. consumers and businesses. A higher yield can push up mortgage rates.

What does this mean?

It means that borrowing will become more expensive. Many folks have been looking at many, many houses , sometimes over a year before they buy, taking their time while the 30-year mortgage rate has been at historic lows. But when the rate jumped last May, it caught many by surprise. This is your signal to get off the fence! A change in interest rates will also translate to higher mortgage payments but only for people with variable mortgages, since fixed-rate mortgages do not change for the duration of their term.

The Moral of the Story:

If you don’t want to get caught up in spending more to borrow less, now is the time to buy and/or list your home. Call Greg Rapp today at 704.213.6846 to see how he’s moved properties over the past years, doing steady and even increasing business despite a slow economy. Greg can make this happen for you before the rates get unappetizing!

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