While the idea of mortgage rates going up might be frightening, the good news is that you can start preparing yourself for this right now. Beyond the typical advice of “start budgeting and save money” I’d like to offer a simple bit of overdue advice. Don’t wait. If you are looking into purchasing a home… don’t wait. If you plan on refinancing, right now is the time to do it.
Beyond just the roller coaster of rates that are going to severely hinder every home buyer/owner in America, many economists forecast that home values in northern Virginia will appreciate by 4.2%. Now, I touched on this in a previous blog post but I cannot say it enough that right now is the time to take action. Home rates go up, you lose buying power. Home prices go up, you lose buying power. Put it together and you exponentially lose buying power. Read my last post for an example on this.
However, there is some good news for our Veterans and first time home buyers. The government loan rates aren’t being hit as hard, so finding a loan rate sub 3.5% is still possible.
Now, I haven’t seen this scary of a “mortgage rates” roller coaster since the financial crisis in 2007 and 2008. This is forcing the spring home buying market to come early this year. Act now to make sure you can still get the home and loan you want.
I’ll leave you with this. A Realtor friend and I were discussing rates and he made a profound statement. “You know Rick, I was selling houses when rates were 17%! 4% is like free money… it’s just free money.” I agree. For any questions or comments, leave me a comment below or visit www.loanwithrick.com.