My thoughts on the Interest Rate Increase

Buy a home with a pool

Lately our buyers and sellers ask us what our thoughts are on the interest rate increase. So here are a few of my thoughts.

If you look for a home now you will have more options than you did 4 months ago. Go lock up that home now while there are good choices available. There is still a high demand for homes and there should be for a while.
You can always look into a 3/1, 5/1 or 7/1 ARM. Meaning it’s an adjustable rate mortgage after the initial fixed term. That will lower your interest rate for the time being, allowing you to lower your payment or qualify for a home with a higher sales price.
Date the rate, don’t marry the rate. Lock in the house with the current rates. Then look for a lower rate. You can usually re-finance as long as you still have a job, solid credit and your debt to income ratios qualify you once rates decline.

The best time to buy is when other buyers are dropping out of the market. The less competition, the easier it gets for those buyers who really want a nice place to live. Get out there during the holiday season and buy a home!