You’re on the fence. Do you buy a house now, or wait and see if mortgage rates fall? If trends are any indication of where rates are headed, waiting may cost you — dearly. In May 2018, the rate was 4.78% — the highest since July 2011 — up from March 2018 at 4.54%. Over 30 years, that adds up to an additional $10,363 in interest for a $200,000 mortgage.1
What does the future hold?
The Mortgage Bankers Association predicted the rates would rise to 4.6 percent in 2018. Realtor.com says the rate will average 4.6 percent and reach 5 percent by year-end.2 While it’s anyone’s guess, the trend seems to be upward.
Homebuyers would be wise to buy sooner rather than later — especially when you consider that as rates go up, home sales go down. While that may seem to work against homebuyers, it’s quite the contrary. Higher rates mean fewer people are buying, which in turn, means less competition for the home you have your eye on. You have more leverage, because when the home seller is having a hard time finding a buyer, they’re more open to negotiation.
Whether rates go up, go down or stay stable, I can help you find a home in Phoenix and throughout Maricopa County. As an accomplished REALTOR® and local area expert, I am the #1 Buyer’s Agent for the #1 agent at Realty Executives and the #3 Agent in Scottsdale.