You know the interest rate has been going up since the election, right? And it's going to keep going up this year. The rate won't jump too much but we're expecting a steady climb.
Now, what does this mean for you? It depends on who you are. Are you a home owner who has been meaning to refinance all year long in 2016? Have you been thinking about selling your home for a couple of years now? Or are you a leisurely buyer?
If you've been meaning to refinance but have been putting it off, you might be kicking yourself right now. It's not too late though. Even though the rates have gone up a lot, the rate is still pretty darn low compared to the past so talk to a mortgage broker right now.
If you've been thinking about selling your home soon, and have been following the market, I'm sorry to tell you that the glorious days of double digit multiple offers are long gone. It all depends on exactly where your house is, but generally speaking, the market is not as hot as it was in 2014, 2015 and even spring of 2016. You'll be well served to lower your expectations this year. Should you wait longer? Depends. Where is your property, what are your future plans? Let's talk so we can get specific.
Dear Buyers, don't get too excited about the glum news for the sellers. While it's true that you won't have to compete like crazy, the flip side of the news is that the rising rate will impact how much of a house you can purchase. Remember, you're not living in the purchase price, but ultimately in the monthly payment. If the rate goes up, your monthly payments will go up as well. And despite the slowdown, prices are still climbing little by little so don't expect a huge price reduction anytime soon.
What's true for everyone is this: If you're going to make a real estate move in the near future, do it now.
Please feel free to call or email me if you'd like a couple of names of top notch mortgage brokers. There are no kickbacks between Realtors and mortgage brokers. As a matter of fact, it's illegal. But I do wish my clients and friends a smooth loan process. If you have any specific or general questions about the real estate market, please call or email me. I'm happy to answer them all.