If you are a First -Time home buyer or you are ready to sell your current home and move into the home of your dreams, now is the time. Since the start of 2018, mortgage rates have increased over a quarter of a percentage and are expected to reach 5% by the end of 2018.
Some may believe, this will pose an impact on real estate prices as fewer buyers will be able to qualify for a loan, and if there is less demand for housing, prices may drop.
However, in a good economy, rising mortgage rates increase the demand for housing as many buyers want to guarantee a lower interest rate on their home purchase, this will continue to drive the cost of home prices.
According to recent economic studies, the last time the mortgage rates increased by 1% over a 12 month period was from 2013 to 2014. During that time period, home values appreciated 9.8%, due to the demand of buyers who wanted to purchase a home with a low interest rate.
In overall, research shows that when mortgage rates increase, the price of homes also increase.
If you have been considering to purchase or sell your home, now may be a good time.
Coastal Point Properties would be happy to represent you in the sale of your home, contact us today!
