Homeowners and homebuyers alike should take advantage of low rates now, one expert says, as interest rates are expected to rise. (iStock)
The combination of record-low mortgage rates and strong economic growth has led to both homeowners and homebuyers rushing to buy a new house or refinance their current loan. The result? A highly competitive housing market.
Now, one expert is recommending that both groups act fast, because higher rates are on the horizon for the real estate market.
“Mortgage rates have been rising and will probably continue that way for the foreseeable future,” said Jeff Taylor, Mphasis Digital Risk managing director. “While I don’t expect them to rise radically, they will stay slightly higher – in the 3% range – which is still significantly lower than a few years ago. The bond market – which sets the tone for rates – is reacting to sharply higher consumer inflation data, as the CPI rose to the highest level in 30 years.”
If you’re considering refinancing your mortgage, you can take advantage of low rates and save money on your monthly payments. Visit Credible to find your personalized interest rate and see how much you could save.
HOME PRICES SURGING ACROSS MANY US CITIES, SAYS NAR – HOW HOMEOWNERS CAN BENEFIT
Homebuyers and homeowners should act now – here’s why
Taylor predicts home prices could increase from 5% to 13% in 2022, with the highest gains occurring in the Southeastern U.S. Although home prices are still rising and the housing market remains competitive, Taylor says that now is still a good time to buy a home or refinance home loans while interest rates are low.
“Make sure your loan pre-approval is as solid as it can be,” he said. “Push your lender for a granular pre-approval that either includes all of your actual documentation that you’ve submitted or actually has the lender’s underwriter review and issue a conditional approval on the loan. With this type of pre-approval, you can compete with cash offers.”
Currently, the average 30-year mortgage rate is just above 3% APR while a 15-year mortgage is at 2.42%, according to the latest data from Freddie Mac. If you are considering buying a home or want to refinance in order to save money on your monthly mortgage payment, visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.
HOW HOMEOWNERS CAN KEEP THEIR MORTGAGE INTEREST RATE LOW AMID A RISING ENVIRONMENT
Fed actions unlikely to slow housing market
Many forecasters, including some members of the Federal Reserve, expect the Central Bank to begin raising the …….