In early December, the Federal Reserve did something that it’s only done twice over the course of the last decade – it raised short-term interest rates.
This action by the Fed to increase short-term interest rates by 0.25 percent has, in turn, affected mortgages, although they currently still stand at some of the lowest rates ever seen in the modern era. While the increase has driven mortgage rates up slightly in turn, as USA Today reports, the Federal Reserve’s decision to increase interest rates slightly is actually not a bad thing. It’s a sign that the real estate market is getting stronger, and it’s an indication that you might want to consider buying now before interest rates go up further.
On the same day that the Federal Reserve announced the interest rate increase, ABC News noted that several Federal Reserve officials said that they are expecting to increase interest rates further in 2017, 2018 and 2019. That is by no means set in stone and there is, of course, a chance that the interest rate will stay the same in the coming years. But if the Federal Reserve was to increase the rate further, it could result in you paying dramatically more for a home in the future than you would pay today.
With that in mind, there’s no better time than now to start shopping for homes if you’ve been looking at home ownership. Rising mortgage rates can add thousands of dollars to the lifetime cost of a home loan, which makes it all the more important to act now if a new home is in your future. Home ownership is a serious investment, but a lasting one, and getting in while loans are available at incredibly low interest rates can save you significantly over the life of your mortgage.
Phillips Real Estate understands that navigating home loans and the real estate market as a whole can be a little bit tricky. Our team is happy to sit down with first-time home buyers and help them understand the process. We can explain some of the financial aspects involved and help you find a home that meets your needs and your budget in the Kingfisher, Okarche and surrounding areas of central and northern Oklahoma. Schedule an appointment with our team today by giving us a call at 405-368-9409 or search our available properties online now.