Owning your own home in Queens is part-and-parcel of the American dream. Yet buying a home always has been (and continues to be) a very complex process. Dealing with those complexities may intimidate many to the point of not even wanting to buy unless market conditions are favorable. How can you tell when they are? It may seem difficult, but paying attention to interest rate forecasts may serve as a predictor of when it is best to buy. If current forecasts are to be believed, now may be the time to buy a home before higher rates (combined with other factors) make it even more difficult to do so.
Business Insider recently published information from the Mortgage Bankers Association which show interest rates on mortgages to be the highest they have been in seven years. Listed below are the current rates on common mortgage packages:
- 30-year fixed-rate with conforming loan balances backed by Fannie May and Freddie Mac (with 20 percent down): 4.64 percent
- 30-year fixed-rate backed by the FHA (with 20 percent down): 4.58 percent
- 15-year fixed-rate (with 20 percent down): 4.02 percent
Experts predict that further rate hikes by the federal government could push rates to close to 6 percent by the end of the year.
Increases in home prices have been witnessed in conjunction with decreases in overall sales being reported by the real estate industry. Those looking to sell might soon be deterred from doing so due to the new tax law removing some of the benefits of homeownership (those who currently own homes retain those benefits from being grandfathered in). Rising mortgage rates might also mean that they will not be able to afford as much house as they would like. Knowing this, you may want to quickly jump on home buying opportunities before conditions cause them to become less and less.