After historically low rates in the past few years, back in March, Federal Rates increased. With this, mortgage rates started to increase as well. When hearing this, some buyers may be scared to venture into the market to look to purchase a new home, but it’s not all bad. There are a few things that you need to know, as a buyer, about the effects of the risen mortgage rates.
In March of 2016, rates for a 30-year fixed mortgage were at 3.68%. In March of 2017, rates for the same 30-year fixed mortgage were at 4.21%. At this 4.21% rate, buyers will pay about $57 more per month compared to 2016. This will also make it harder to refinance. When mortgage rates dropped in the past years, many people took advantage of refinancing and locked in amazingly low rates. Today, it would be hard to knock off a ½%. However, about 55% of mortgage applications in late November of 2016 were form refinancers, according to Mortgage Bankers Association. So if you didn’t take advantage of refinancing with the historically low rates in the recent years, you should do it now, as they very well may continue to increase.
As Bill Banfield of Capital Markets at Quicken Loans says, higher rates could translate to the expectation that growth, wages, and home prices will continue to increase. It could also translate to the expectation that the home inventory shortage will continue. All of which we have been seeing lately.
With these higher rates and lower inventories, it can be very scary and tricky to try and navigate the market as a buyer. When it comes to looking for a new home, it’s best to hire a licensed Realtor with good experience and great success rates to help you through the process. The Elizabeth Monarch Group is the team that you want to help you with the buying process!
If you’re in Louisville or surrounding areas, The Elizabeth Monarch Group is the team of experienced Realtors that you need! Whether you’re buying or selling, The Elizabeth Monarch Group will be there from listing to closing and beyond! We provide buyers and sellers with professional service throughout the buying and selling process and help with things such as repairs and upkeep with our Trusted Affiliates program. If you’re in the market to buy or sell a home, contact us today! Check out our website at www.theelizabethmonarchgroup.com!