Reasons to Buy Now
Mortgage rates now are around 6%, fluctuating between 5.875% and 6.25%. This is about 1% lower than 12 months ago.
Local Mortgage Rates
As of October 15, mortgage rates with no points were:
- 15-Year Conventional Fixed 5.625%
- 30-Year Conventional Fixed 6.00%
- FHA 30 Year Fixed 5.875%
- VA 30 Year Fixed 6.00%
- 30-Year Jumbo 6.00%
1. Mortgage Rates May Be As Low Now As Next Spring
It is possible that today’s rate of 5.875%-6.25% is still comparable to rates projected for next spring. (See mortgage rate projection chart below.)
Many would be buyers mistakenly believed that residential mortgage rates would move lower after the Federal Reserve lowered their benchmark overnight borrowing rate. Instead, in October we saw mortgage rates rise.
Bond yields again moved higher because Yellen must sell more bonds to cover ever rising government spending, and investors demand higher yields. Both presidential candidates are likely to continue higher spending, which fuels inflation and makes it likely that mortgage rates will be higher for longer.
“Waiting until next spring or summer should also give you more inventory to choose from, but you’ll likely be up against greater competition since it’s the peak buying season.”
– Business Insider
2. Home Prices Will Keep Increasing
Home prices in our region continue to appreciate. It is possible the home you don’t buy now will cost 2%-3% more next year.
3. Greater Competition & Tougher Negotiations
Buyers are likely to encounter more challenging negotiations and multiple offers, as well as upward pressure on home prices caused by an influx of buyers lured from the sidelines by potentially falling mortgage rates.
Connect with a local real estate professional at Ruhl&Ruhl Realtors and they’ll help you stay informed on what’s happening!
