Rates Rise Sharply
Have you been thinking about making a move, buying a new house or a first house? Time may not be in your favor if you’re like most buyers and need to get a mortgage – 30 year fixed-rate mortgage rates have risen significantly in the past six months, though they’re still fairly low historically. Take a look at the graph below which is based on data from the Federal Reserve Bank in St Louis:
What does this mean for you?
As rates rise, the same monthly mortgage payment will have less purchase power, with more of each payment going towards interest.
If you’re holding off making a move, it might be a good idea to speak with a mortgage lender now anyway. We have a great group of lenders we work with who can help assess your current financial situation and work with you to chart a course to get you the property that’s right for you, explain your options, and counsel you on ways to improve your credit score if that’s an issue. Contact us and we’ll put you in touch.