July 16th, 2017 10:36 PM by Christel Silver
Does the mortgage rate matter?
When I started my real estate career in 1985, the 30 year fixed rate was 18% and the VA loans required between 5-8 points, which had to be paid by the seller. (One point equals 1% of the loan amount.)
Mortgage rates changed in the last quarter of 2016, with the 30-year fixed ending the year at 4.32%. It rose more than three-quarters of a percentage point in the final three months of the year, but then came down a little this year. Mortgage rates are still low so now is a good time to lock in rates.
The market was good, people were buying homes. You look for a home when you want to, and then you buy what you can afford, right? When you start a family and you want to buy a home, the interest rate might force you to buy a smaller house than you would like or to buy in the suburbs rather than in the City, but you are buying a home. Buying is a personal decision and you should buy when you are financially ready to buy. Rising rates aren't necessarily a deal breaker. The National Association of Realtors® calculated that a rise from 4.2% to 5% would increase average monthly mortgage payments by $90. And really, those higher rates are still historically low.