Buy a Home Now or Later? Proper Context on Today’s Rising Interest Rates and House Prices
Potential home-buyers pause when they hear that home prices are rising, inflation pressure is rising and mortgage rates are also rising. But you must consider a broader context when evaluating the current market to determine if now is the right time to explore home ownership or that move to another home. For example, did you know that something else is rising too… U.S. wages! Plus, did you realize that today’s fixed-rate mortgage rates, while rising, are still near historical lows? Seriously. In the 40 years preceding the Great Recession period of 2008-2009, the housing market never experienced fixed mortgage rates as low as they are today! Higher Wages + Historic Low Interest Rates means House Buying Power Remains Near Historic Highs. The fate of consumer house-buying power in 2018 will depend on the tug-of-war between rising household income and inflation-driven pressure on mortgage rates.
A GMFS Mortgage Loan Officer can help you evaluate your home ownership goals and mortgage options to determine if making a move now makes sense for you.
Read the full article by Mark Fleming: What Does Faster Inflation and Rising Mortgage Rates Mean for Housing?