With mortgage rates on the rise, is now the time to buy?

June 17, 2013

As we all know mortgage rates are low right now. In 2012 a 30 fixed-rate mortgage was around 3.67%. Compared to this year we are up to 3.91%. With mortgage rates on the rise it gets people thinking about whether or not now really is the time to buy.
As a Licensed Realtor of Minnesota, I can tell you that inventory is incredibly low right now. There are not enough houses out there to get all of the first time homebuyers and move up buyers out to look at them. This can be discouraging to someone who is in the market to purchase a home. They may think that because properties are selling so fast, they will never be able to get the home they want. Stop that thinking! The reason properties are selling so fast is due to the low interest rates. People are taking advantage of the low interest rates now because back in 2004 interest rates were between 5-6% average. This is definitely something to utilize, which many people are. In turn, inventory is low, properties are selling fast and if you are looking to purchase, now is the time to do it!
Starting your home ownership off with a lower interest rate is a great plus. It will help with your house payments immensely. If you start off with a higher interest rate, yes you can always refinance down the road when interest rates drop, but why not take advantage of them now?
Now is truly a great time to purchase a home, whether you are a first time homebuyer or a move up buyer. Interest rates are still low and getting you into the home of your dreams will always be our first priority.

Chelsea Knutson
Realtor- GRI, ABR, CDPE
the Better Living Group
Keller Williams Classic Realty NW