The recent Federal Reserve meeting in late March confirmed what experts had been speculating about: Interest rates, including mortgage interest rates, are on the rise.
As widely expected, the Fed raised the federal funds rate by 25 basis points. Of greater interest to investors, Fed officials increased their projected pace of future rate hikes from their last set of forecasts in December. While just four officials projected in December that four rate hikes will be needed in 2018, seven officials now expect that to be the case. The forecasts for the pace of rate hikes in future years also increased.
These interest rate hikes are slowly eroding the purchasing power of homebuyers by making it more expensive to purchase a new home. Since more rate hikes are confirmed for this year, now is the time to take advantage of rates that are still historically low. Homebuyers can save hundreds or even thousands by purchasing a new home now. Learn more about the impact of rising interest rates on buying power.
There’s no time like the present to save money. Contact me for information on applying for a loan, interest rates, or other homebuying questions.