Rates on 30-year mortgages rose again this week, climbing to the highest level in more than nine months, reflecting more concerns about how the Federal Reserve will respond to higher inflation pressures, according to money.cnn.com. But that isn’t necessarily all bad, especially if you are looking to buy a home. One of the reasons real estate was so high during the housing market bubble was because interest rates were so low. The hike in mortgage rates also means the price real estate is going down. This is where a good real estate appraiser can help, because they can help ensure you get an appraisal that brings a seller fair market value, and ensures a buyer isn’t being charged more than the housing market in their area warrants.
But mortgage rates rising effects more than just the cost of homes and the rates right now are the highest level for 30-year mortgages since they averaged 6.46% for the week of Sept. 9. It marked the fifth consecutive weekly increase and the fifth week that they have been above 6%. So, if you are in the market for real estate a reputable lender, agent and appraiser are a must.
According to money.cnn.com the rates on 15-year fixed-rate mortgages rose to 6.04%, up from 6.02% last week, and the five-year adjustable-rate mortgage rose to 5.99%, up from 5.89% last week. The rate on a one-year adjustable-rate mortgage rose to 5.27%, compared to 5.19% last week. This means as a buyer you’ll have to decide when it makes the best financial sense to purchase real estate. You have the value assessed by a real estate appraiser, have your real estate agent negotiate the best deal and make sure you are dealing with a reputable lender.
The housing market is facing numerous headwinds, from slumping prices, which are keeping potential buyers on the fence, to rising mortgage defaults, which are dumping more homes on an already glutted market. While it’s a good thing for buyers to beware, don’t wait too long because the housing market works in cycles, which means eventually it will go back to being a seller’s market. A good real estate appraiser can tell you whether you are getting a fair market value deal compared to the other homes selling in the area, and an experienced real estate agent can help you negotiate a better deal, which often times means the seller must add incentives.
I know it’s a little scary to see mortgage rates rise nearly each month, but keep in mind they were realistically too during the time the housing market was in its so-called bubble. Even if you decide now is not the best time to buy, it is the right time to begin to keep a closer eye on how things shake up.
Visit us at www.iappraiseforyou.com for more information on real estate appraisals.