I get asked all the time if mortgage rates will increase during the 2017 year. When I answer, “Most likely, yes.” The very next question I get is how much will they raise.
While, you can’t pinpoint the exact amount mortgages rates will raise (or even lower), the general consensus among the rate gurus (Freddie Mac, Fannie Mae, Mortgage Bankers Association…) all say rates will rise.
Why, oh why, you ask?
Well, when unemployment is down, and wage growth is on the rise, that spells out inflation. While this is great for the economy as a whole, it’s not so great for mortgage rates.
Rates are currently around 3.52% and are positioned to incline around 4% – depending on which guru you talk to.
One positive of this is that home buying is still supposed to be strong throughout the 2017 year. Home prices will increase, but not at the pace of the 2015 and 2016 market.
What should you do if you want to buy a home but are concerned over the rates?
- Talk to more than one lender or mortgage banker.
- Build up your credit, as that helps with your personal rate you qualify for.
- Put more money down.
Contact me if you want a referral for a mortgage lender, I do know a few of them that are aggressive with rates and fees. They just may be a right fit for you!