Are Interest Rates Going Up This Year?
This Article On “Are Interest Rates Going Up This Year?” Was Written By Bob Vogel NMLS 1446953
When it comes to the current housing market, no one can, without absolute certainty, predict the values of homes.
- Are they going up, or are they going down?
- While financial analysts and industry experts can forecast events by using past data, they cannot be certain of future outcomes.
- With that said, there is much speculation on what the Federal Reserve is going to do to interest rates in 2017.
- Will 2017 be a good time to buy a home?
Property values throughout the country has been escalating for the past several years:
- Are Interest Rates Going Up This Year?
- Interest rates have a direct affect on property values.
- It affects a home buyer’s decision because the interest rate is used in the calculation of a monthly mortgage payment.
- An interest rate hike can mean deal-or-no-deal on a particular house for a buyer who has a marginally close or high debt-to-income ratio.
- This is due to a direct causation of interest rates and the impact on a monthly mortgage payment.
- Although, while rising interest is a factor in the real estate market, it isn’t the only factor as supply and demand and readiness of capital also drive the housing market.
Brexit And Mortgage Interest Rates
With Great Britain’s vote to leave the European Union on June 24, 2016, the notion of raising interest rates is unlikely. According to Freddie Mac, interest rates are likely to go up to at least 6% by the year 2020.
Weak Job Growth And The Home Purchase Market
Weak Job Growth And Impact Of Home Purchase Market:
- Are interest rates going up this year?
- Its no secret that the U.S. job market is tied to the housing market.
- The Federal Reserve has indicated that slow job growth will halt any interest rate hikes.
- Additionally, the Federal Reserve does not historically raise interest rates right before an election.
- In its May 2016 meeting, the Federal Reserve announced that they did not intend to raise interest rates due to the poor job growth and slow improvement to the economy.
So Should You Buy A House Now Or Later?
Deciding when to buy a home is a very personal and emotional decision that takes lots of forethought, research, and careful planning.
- If you are ready to buy now and are sitting o the fence because you are not sure what is happening with home prices, now is the time!
- Interest rates are still reasonable and market prices are still well below 2008 trends, prior to the bursting housing bubble.
- While inventory remains low, buyers are still in a great position to negotiate good terms on a home purchase.
About the Author: Bob Vogel NMLS 1446953 Of The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 873293
Robert Andrew Vogel III NMLS 1446953 is a senior mortgage loan officer with The Gustan Cho Team at CrossCountry Mortgage Inc. NMLS 3029 and is a senior writer and partner with Gustan Cho and Associates and is armed with decades of accounting and finance knowledge.
- Bob has an MBA and a Master’s Degree in Accountancy, and has advanced knowledge of business taxation.
- Robert Vogel’s passion is helping others and being armed with his extensive accounting experience and being an expert in real estate and finance.
- Bob Vogel will be partnering up with Gustan Cho Associates and will be a full service mortgage banker specializing in FHA Loans, VA Loans, USDA Loans, Conventional Loans,
- FHA 203k Loans, Reverse Mortgages, Jumbo Mortgages, Non-Conforming Loans, and Commercial Loans.
- Robert Vogel’s specialty will be originating mortgage loans with no lender overlays. Bob represents CrossCountry Mortgage NMLS 3029 a five star national FANNIE/FREDDIE/GINNIE DIRECT LENDER WITH NO OVERLAYS and its policy in closing loans in 21 days. If you have any mortgage lending questions and Home Purchase and like to go over case scenarios and know more about the area, feel free to contact Bob Vogel at firstname.lastname@example.org.