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Federal Reserve Chair Janet Yellen said the U.S. Central Bank may raise short-term interest rates at its mid-December meeting, but emphasized no decision has yet been made.
This headline from the Wall Street Journal says it all. When I’m asked to predict what interest rates will do, I kiddingly say rates may go up, they could go down or they may stay the same.
After 38 years of working in the home purchase market, here’s my November message to potential home buyers…”Don’t Put the Turkey in the Oven too Soon!” Let’s take a closer look at what this means to potential home buyers.
With mortgage rates at historical lows and home prices beginning to appreciate, now is the time to take action and find your dream home. With holiday marketing all around us, we can be tempted to focus on the holidays and delay decisions on a home purchase. That delay could cost you dearly.
If rates do increase as the Wall Street article indicates, your buying power and/or ability to qualify will be negatively affected. Keep in mind that we’ve seen rates increase slightly already. A delay today could also mean that the home of your dreams will be sold before you take action. Inventories are selling faster today. There will be growing competition for many properties on the market, especially if rates continue to increase as we approach the end of the year.
We all look forward to spending holiday time with family and friends but, “Don’t Put the Turkey in the Oven too Soon.” Take advantage of this great market and you too can be celebrating a Happy New Year in your dream home.
By: John Inzeo, Vice President of the Wisconsin Mortgage Corporation
Source Credit: Fed’s Yellen: December Is ‘Live Possibility’ for First Rate Increase, The Wall Street Journal
Tags: dream home, shorewest, short-term interest rate, Wisconsin Mortgage Corporation
Categories: First Time Home Buyers, Home Buying, Mortgage, Real Estate News
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