FED Raised Interest Rates
FED raised interest rates. One may even say "The FED finally raised interest rates because, let's face it: it was fun while it lasted, kids.
Just over two years ago, we were all enjoying the opportunity for a less than three percent interest rate if our credit was not scary and we had five percent as a down payment (of course these numbers very by individual investors).
Earlier this month, the FED finally raised the national interest rate so better balance the raising stock market, inflation and the ten year bond yield. But:
What Does A Higher Interest Rate Mean For a Home Buyer?
In a nutshell, it means that for the same priced home, you'll pay more each month than a neighbor who bought just a month or two earlier than you did. It can hurt ones pride. It definatley hurts ones pocket book.
What Can I Do About Now That The FED Raised Interest Rates?
Unfortunatley there is nothing that can be done except for pay attention to the possability of another interest rate hike and planning for it. We have been all-but-promised that there will be two more interest rate increases by the end of 2018. This means that if you have considered purchasing, the time is now. In my opinion, timing is no better than right now.
You still have time to find and close on a new home before the end of Summer and likely before the next FED meeting in Early Fall which will impact your quoted rate. You will also have time to settle into your new neighborhood before children return to school.
It's the heat of Summer, but let's go find some free air conditioning. Let's go find your new home.
Still Need Time To Save For A Down Payment?
I have a solution for you. Let's go look at Sky Crossing New Homes near Desert Ridge by Pulte and Taylor Morrison. Other than your initial earnest deposit, the rest of your down payment will not be due until the home has finished being built. That will give you at least a few months or half of a year to save. Still in a lease? I have creative solutions for that that you will love. Afraid you won't sell your home fast enough? We close dozens of homes every year which we encourage you to verify on Zillow... you are in good hands.
It's worth considering! Let's go look. -Leon