The historically low mortgage interest rates have spoiled home buyers in recent years. Experts are predicting that interest rates will go up in 2018. If you’re thinking of purchasing a new home in 2018, it would be wise to buy sooner rather than later.
Mortgage Interest Rates Will Rise In 2018
After years of historically low interest rates, 2018 is looking like the year that will start an upward climb in those rates. If there is a sign of increasing inflation in 2018, the Federal Reserve may end up raising rates higher than was anticipated.
Currently, the Federal Reserve has three interest rate hikes scheduled for 2018. If it looks like inflation is picking up, additional increases may be scheduled. In addition, with its new Chairman appointed this year, the Federal Reserve is under new management, which complicates the prediction process.
The Impact Of Rising Interest Rates
As a potential home buyer, it’s important for you to be aware of changes in the interest rates. If you’re buying at the low end of your price range, a slightly higher interest rate will probably keep your mortgage payments within your budget. However, if you’re buying near the top of your price range, higher rates are going to start hurting.
In addition, the amount of money you pay over the life of the loan will add up much faster. Even if you don’t plan to keep your home until you pay off the mortgage, you’ll still end up paying more for the privilege of living in the home at higher interest rates.
Prices Predicted To Rise In 2018
Home prices have been rising over the past few years. That’s a good sign for home buyers because they’re buying into areas that will appreciate over time. However, it also means that the home you want is going to be less affordable as the year progresses.
Many experts are predicting that home price increases may be slower this year. However, if you know you’re going to move this year, you’d still be better off buying early in the year.
The Chances Of A Housing Bubble
Some people are concerned about a housing bubble happening again in 2018. However, experts like Redfin and investment management firms like Unison don’t see indications that a bubble will happen in the current environment.
More Entry-Level Homes Available In 2018
One thing that has slowed the real estate market in many areas is the low number of homes that are being put on the market. The inventory of homes on the market in 2017 was relatively low, but the experts are anticipating that 2018 will be a different environment.
One very bright light is that it’s predicted that the construction of single-family homes will pick up in 2018. That’s good for many young individuals and families who would like to get into home ownership but have been shut out due to lack of inventory at first-home prices.
Start your search for a Real Estate Agent and get pre-approved for a mortgage. If you’re renting, don’t sign another years lease. If necessary, you can find short-term housing and use a storage facility, to keep your belongings safe and sound.
Whenever you’re ready to make the move, Carmack Moving & Storage will be there to help. We can make your move less frustrating when you use our packing services. In addition, whether you need local or long-distance movers, you’ll find that the Carmack experts are professional and dependable. If you’re preparing a budget, we’d be glad to provide a quick custom quote to help you plan your move.