Interest rates are rising and economists predict they will continue through the end of the year. While this can intimidate buyers it is important to keep these increases in perspective. Even if mortgage rates reach 5 percent as predicted this is historically low. Mortgage rates between 1979 and 1990 consistently averaged above 10 percent.
So what does this mean for today’s home buyers? There are ways you can counter the increase in mortgage rates. If you have the ability, put more money down which will decrease the amount borrowed.
Work on ways to improve your credit where possible. With a credit score above 760 it is possible to get the lowest available interest rate on your home loan.
Already on the market for a new home? Act quickly! With interest rates expected to rise through the end of the year the faster you can lock in your loan and save yourself some money!