What happens when interest rates start to rise?
If you are thinking of buying a home, you may be wondering what to do if interest rates start to rise. News reports of rising interest rates may leave you anxious to lock into the lowest rate you can. While rates my rise, experts say that any increases are expected to be modest. Making sure you are in constant contact with your lender during the entire home hunting process will help keep you calm and on track.
What the experts say...
Sixty-two percent of consumers think interest rates will continue to increase during the remainder this year and into 2018. Experts agree that rising interest rates will have an impact on the affordability of mortgages and may slightly impact the overall US housing market in many areas, Reno, NV included.
Many of the buyers I talk to feel that a modest increase in interest rates won't affect their decision do purchase a home. They might have to think about reevaluating which homes they can afford, but a slight increase should not make an impact on qualify, in most cases.
Perspective is important...
Although rates are expected to rise, it is important to keep in mind interest rates are still almost half the historical average of 8.25 percent. Even if rates continue to increase, they will likely remain well below that number. Additionally, more applications are being approved than before due to better lending models and a strong housing market. The bottom line is, if you're ready to buy, it is always a good time to get started on the home buying, mortgage applying process.
When interest rates start to rise while you are still in the hunt for the perfect home, take the time to work closely with your lender to help guide you along the way. Your trusted real estate adviser will be another great resource to help you through the ups and downs of mortgage interest rates.
When interest rates start to rise...
If you surround yourself with professionals who are experienced with all levels of the mortgage world and the home buying process, you won't have to panic when interests rates start to rise. You will be guided throughout the process and feel confident in the decisions you are making.
At Ferrari-Lund Real Estate, we work with a team of professional lenders who have can help you with this process. Please feel free to contact me for a list of our preferred lenders when you are ready to start the home buyer process. My contact number is 775-846-5424 and my email is Terrie@terrieleighton.com.