Are Mortgage Rates Going to Go Up?
With the price of homes going up due to a strong economy and high demand, mortgage rates are helping to balance it all out by keeping things affordable.
Essentially, the lower your mortgage rate, the lower your monthly payments.
With Freddie Mac predicting that mortgage rates should stay where they are for the next 12 months, this shouldn’t be changing anytime soon.
2. Is Now a Good Time to Buy or Sell?
The short answer is: yes and yes.
As said above, low mortgage rates mean it’s a great time for anyone to buy: whether it’s for the first, second or fifth time. This is especially true for someone looking to upgrade their home and purchase one in a higher bracket.
The low mortgage rate will help you afford more house at a lower monthly payment.
Combine that with low inventory and high demand, and you have an equally good seller’s market. This goes especially for homes in the low to mid-range.
3. Are Home Prices Going to Keep Rising?
Data from the leading experts in real estate and mortgage lending says yes.
But before anyone panics, that means now is the best time to buy and sell.
With mortgage rates expecting to stay where they are and an anticipated 3.5-5% price appreciation happening in the next year, this is without a doubt the best time to buy.
Waiting only means one thing: spending more for the same house.
Take a look at our price appreciation slide so you can show them the facts to back it up.
4. Do I Need to Update My Home Before I Sell It?
Making updates could mean a higher asking price. It could also mean investment loss.
Depending on the type of updates needed, the market’s current low inventory levels put any home that hits the market in a good position to sell. Yes, some homeowners prefer to buy a “turn-key” home. On the flip side, others may want to make the updates themselves, so everything is to their taste.
Check out this post on which updates have the highest return on investment.
5. Is a Recession Going to Cause Home Prices to Fall?
Yes, it’s very likely a recession will hit either next year or the year after. However, this in no way means a housing market catastrophe like the one that occurred in 2008.
Here’s why:
-Of the last five recessions, only two saw a decline in home values with three seeing increases.
-The two that saw declines were in 1991 (-1.9%) and of course, 2008 (-19.7%).
-The current market does not remotely resemble the one before the 2008 crash.
-The top causes for the next recession have nothing to do with the housing market, unlike that of 2008 when risky borrowing led to a bubble that was bound to burst.
