If you’ve been thinking about buying a new home, you may not want to wait too much longer.
The mortgage rate is defined as the rate of interest charged by a mortgage lender. And right now, that rate is at a four year high, and in all likelihood will increase in the near future.
That means a home buyer will have a higher house payment for the same house as they would have had just a few months ago. Sheila Whitehead with Guaranty Bank Mortgage Center says if you’ve been thinking about buying a new home, now might be a good time to get started.
“Rates are going up as inflation goes up and the Fed came out and said that they expect the next year that inflation will go up rates will go up with it, so if you’re in the market thinking about buying, now’s a good time to go ahead and take that plunge and get into a home before rates get any higher,” says Sheila Whitehead.
But realtor Mary Plunkett says there’s another factor — not just mortgage rates — that are having the biggest effect on the local housing market right now.
“We need more houses to sell because we actually have more buyers right now and we’re kind of a little bit low on houses,” says Mary Plunkett.
Regardless of what’s going on with rates, Sheila Whitehead says you should get your financing taken care of ahead of time even before you start looking for homes.
“You don’t want to go out and find that dream home and I have to say oh well we’re about three months out because your credit’s not there, so it’s always good to get with a mortgage lender before you start looking for homes so you can know exactly what you can purchase,” says Sheila Whitehead.