Are you dreaming of a new home in 2019? We know how it goes - looking at houses online in your favorite neighborhoods and wondering if this is the right time to buy. Many buyers wonder if they should purchase a home now or wait a few months to see if that makes better financial sense. With interest rates expected to rise in 2019, now might be a good time to consider buying a home.
Why Interest Rates Are Rising
Through the end of 2018, The Fed has raised interest rates and that means mortgage rates have increased as well. Mortgage interest rates are a percent higher than they were a year ago. These rates are expected to rise more through 2019.
The rise in interest rates is happening gradually but mortgage rates are historically low for now, meaning that it can still be a good time to buy a home. But if the rates continue increasing, what does it mean for your home purchasing plans?
How Do Rising Interest Rates Affect Home Buying?
With mortgage interest rates predicted to continue rising this year (source: NPR), it will have an impact on your home buying decision. When you get a home loan with a higher rate, it means you will have higher monthly payments. While these jumps in payment amounts are not outrageous, every rate increase can make it a little tougher to afford your monthly payment as well as your ability to qualify for a loan with a lender. Our loan advisors are here to help you determine what size mortgage you qualify for and what price home you can buy based on your current income and expenses.
Should You Buy a Home Now?
The increases are predicted to happen gradually. But since rates are predicted to keep rising, you can save yourself a little money on expenses and improve your purchasing power if you buy sooner rather than later. You can also decide to lock in your interest rate earlier in the loan process to avoid rate increases.
Please note that although most industry analysts expect interest rates to rise in 2018, a number of economic events could produce different results.
Despite whatever happens to interest rates, you should also know that APM has many programs that allow no or low money down and can save you money in other ways. As your leader in California Homebuyer Mortgage Education, let's make your dream of homeownership a reality in 2019.
Schedule a complimentary consultation today or register for a free California homebuyer workshop to go over your home loan options and how your payments might differ later in the year if rates go up. Get on the path to homeownership today!
Restrictions may apply. American Pacific Mortgage Corporation is licensed by the Department of Business Oversight under the CRMLA. NMLS #1850. All programs are subject to borrower and property qualifications. Rates, terms, and conditions are subject to change without notice.