If you have been keeping up with the news, you may now know that mortgage interest rates are no longer record lows. Financial analysts are predicting rates to increase to 5% by mid 2014. While in the middle of searching for the perfect home, I have had a couple of buyers’ purchase power decrease because of the rising interest rates. In one case, a couple I had been working with had their purchase power decreased by fifty thousand over a few months. Needless to say, it’s pretty shocking news. It is important to make sure you have communication with your mortgage loan officer about how current interest rates can affect you.
Don’t let the rising mortgage rates scare you about the purchase of a home. Home ownership is still attainable! It was just a few years ago that we thought an interest rate in the 5’s was rock bottom.