Ok, I know all of you were glued to the TV last week when the Federal Reserve talked about raising rates. If you are a nerd like me, you put everything on hold, including the dog, the cat, and the kids. You are probably like many who are considering purchasing a home soon. The conundrum is figuring out this housing market.
Interest rates are at historical lows, so of course you are thinking its time to purchase a home. But then you’re wondering is covid still impacting the housing market.
Quite simply Yes! Covid is definitely affecting the market. Even though the economy seems to be moving in the right direction. People are venturing out, and sellers are beginning to take a harder look at placing their homes on the market.
The concerning factor with the Federal Reserve is the announcement of bond purchases tapering off sooner rather than later. The end result is interest rates rising sooner rather than later.
While mortgage rates do not follow the federal funds rate, they do loosely follow the yield on the 10-year Treasury, which just hit the highest level since July 2.
While other factors also contribute, interest rates have always been set to move back higher as the pandemic subsides.
O.K., I know this is not the most interesting topic, well unless your daily fashion ensemble includes a shirt pocket protector.
The practical take away from this is if you are considering purchasing a home you should look at purchasing sooner rather than later.
Since we now know that the rates will begin to rise probably by the end of 2021, my advice would be to secure a mortgage while the rates are low.
It’s time to call you local mortgage broker. If you need help locating a mortgage specialist talk to your friendly real estate agent. Good Luck!
By R. Jones
