Let’s get straight to it – interest rates are on the rise and will most likely continue to rise into 2022. Now is NOT the time to wait; in fact, it is best to purchase your next home sooner rather than later while rates are still relatively low.
Additionally, although it is still a strong sellers market, the number of days it takes to sell a home has increased from 6 to 10 days in the last quarter which means the level of competition to buy right now is less than it’s been in a year and a half! There is still competition, especially for nice homes that are priced right, but it’s more like 2-5 offers rather than the 15-25 offers that were commonplace.
Not convinced? On Friday, October 1, 2021, the average APR for a 30-year fixed mortgage was 3.37%, up 13 basis points over the last seven days. In fact experts expect mortgage rates to continue to rise as the Fed gets ready to pull back on, and eventually stop, its mortgage stimulus program. When that happens, rates will almost inevitably go up for borrowers. So cautious borrowers should lock in a rate before we learn more about the Fed’s tapering plans, which many believe will be announced in November.
Still not sure? The average DC 1 bedroom apartment is $2,210 a month to rent; up 11.10% from this time last year. A big benefit of having a mortgage is that your mortgage payment stays the same. Once your lease ends and you go to re-sign, your landlord can ask you for $200 extra a month if they want, but the bank can’t ask you to pay more for the same reason. Your mortgage serves as a hedge against the rising cost of housing.
The good news is you still have time to take advantage of the historically low interest rates. I’ve written before about the difference interest rates can make on your monthly payments and your total mortgage cost. Don’t let the current market scare you; instead take advantage of current interest rates before it’s too late.
Ready to talk about moving? Call me or book a discovery call with me today. I’d love to talk to you about all the wonderful things that come with home ownership.
Warmly,
Arynne
PS: Not sure if you’re quite ready to buy your next home just yet? No problem. The sooner you start learning the ins and outs of this process, the better. Click here to book a real estate consultation call with me today.
