In a recent article put out by MSN Real Estate, they stated that there were 14 changes coming in the near future for home mortgages and buyers. I am going to go over one of these changes that I found particularly important to note. I will be covering the other items soon. This information is pertinent for individuals looking to buy homes for sale in the next year.
One topic that jumped out at me stated that members of the Mortgage Bankers Association are predicting that interest rates may rise up to 4.9% next year. Today interest rates are sitting at about 3.4% – 4.14% (View our current mortgage interest rates page to see the most up to date rates). A very helpful analysis of what this means for prospective home buyers in Arkansas is as follows:
“Each increase of half a percentage point adds about $25 to $30 a month to the payment for a $100,000 mortgage.”
Wow. That really puts it in perspective just how much a small increase in interest rates can jump up the cost of a mortgage payment. Even though many economists and mortgage experts often disagree on many things, they all agree that NOW is the time to make your move if buying a home was in your future plans. We have been blessed with extremely low rates this past year, so don’t let that opportunity to save yourself some money slip away. The article stated that even though our current interest rates have been jumping around, we are still in a perfect window of low interest rates for first time home buyers, new home shoppers, and everyone else in the market for new properties in Arkansas and all over the US.
Above is the mortgage interest rates in Arkansas as of October 29 2013. As you can see we are still sitting quite low. But in reference to the predicted rates of 4.9% for later next year and the math equation above, you can see realistically what an impact rising rates make on mortgage payments.
If this news has sent a shock through you and you are ready to lock in a low interest rate on your next home in northwest Arkansas, I don’t blame you. It has had that impact on many folks around the area. The message is clear here folks, now is the time to buy and get in on those low rates. Why wait for when they go up when you could lock in your low rate now. Contact me with any questions you have about this matter or if you need assistance in your home search. I’m very knowledgeable about Northwest Arkansas and the home buying process and as always, I would be more than happy to help you with anything you need.
Have a Happy Halloween Arkansas!
Phone: (479) 298-3224