Though it hasn’t been in the news as much lately, I’m sure you’ve heard by now that interest rates are on the rise. A couple years ago, experts were predicting that we’d reach about 5%—and we are getting darn close to it, depending on what bank or mortgage company you’re going through.
Some conventional rates are very close to 5%. Some jumbo loans I’ve seen recently were even a little above 5%. Meanwhile, FHA and VA loans are hovering around 4.5%.
Whatever the loan you have, the increase in rates will probably affect you in some way or another. If you were pre-approved three or four months ago, check with your lenders again and ask for a good faith estimate, just that you’re aware of how much it will affect your monthly payments. By summertime, it’s projected that rates will be closer to the fives, if not a little above.
Even in light of this, the market is fairly busy, overall. The luxury market (or the price ranges around or above $1 million) is a bit slower; I recently saw a high-end $12 million property suppressed down to around $9 million. But the rest of the market is very active, and many homes are seeing multiple offers in light of the inventory shortage.
Ultimately, just be sure that you’re speaking with your lenders so that you know exactly what your payments are going to be so you’re prepared for any differences that are caused by increased interest rates.
If you have any questions about this, please feel free to reach out to me. I’d be able to answer your questions or set you up with a good lender.