When are these darn rates going to stop going up!?!?
When are these darn rates going to stop going up!?!?
This is the question on everyone’s mind, and the truth is – no one knows. Rates have historically not been nearly as volatile as they have been in the last 6 months, and with the Fed trying to stop inflation (and having such a rough go of it so far) there is no telling when we will start to see rates come back down to levels from pre-2020, especially since the Fed has already announced another increase in rate in the near future (seen here) and there is no telling just what impact that may have.
The good news is that volatility can create some unique opportunities, and smart homeowners can take advantage of that volatility to give them a leg up. While many prospective buyers have elected to sit on the sidelines due to the increase in interest rates, savvy buyers have been making offers on homes and doing so with the plan to not just purchase now, but using some unique programs to stem the short term cost, and plan to refinance once rates begin to come back down. In addition, many buyers have updated their plans for down payment due to different opportunities available for investment. We’ve written some about this before here and we always encourage buyers to discuss large financial decisions with their financial advisors.
So what is the best thing to do right now? Another great question. If we had a crystal ball it would be easy to “time the market” and make the best buy you could with the lowest rate. Since that is not possible it’s generally the best idea to still buy, but also to follow the market closely in the time after your purchase, and work with a lender that will keep you in the loop on options to lower your payment over time. Bad rates won’t last forever, but that is no reason to not purchase a home!
Housing decisions are always big ones, and there is never a right answer that is the same for everyone. If you’d like to discuss rates and a long term plan we’d love to schedule a time to do so. You can reach Scott Lake at 360-649-2445
