Today I want to answer two very important questions that will help you understand a little more about the current housing market and what you can do about it. So let’s jump right into it.
What’s going on with mortgage rates?
You’ve probably heard the news over the last week about the sudden increase in mortgage rates. Officially, they have reached a one-year high. So why is this happening?
Some professionals believe this is a result of inflation and/or an improving economy, however my professional opinion is different. The federal government recently stopped infusing money into the bond market, which made the bond market get a little chaotic. Because of the lack of funds that previously were being pumped into the system, I believe rates will continue to increase.
So what should you do about it?
Mortgage rates are still extremely low. In fact, rates have basically been coming down since they peaked in about 1981 at just under 15 percent! They have now begun their bounce up again and no one knows when they’ll stop.
My advice is to get pre qualified to help you start looking for something you can afford. This can seem like a scary and daunting task, but it’s really not that difficult. You can call your local mortgage broker and they can quickly and smoothly start you on the right path towards getting you into your new home.