Rising Interest Rates, Should You Be Worried?


Rising Interest Rates, Should You Be Worried?

 

Not at all. Rising Interest Rates indicate that the economy is getting better. Rates are still lower than they were 2 years ago.

Rates for home loans rose for the ninth straight week, marking the biggest increase since the 2013 “taper tantrum,” mortgage finance provider Freddie Mac said Thursday. The 30-year fixed-rate mortgage averaged 4.32%, up two basis points during the week. The 15-year fixed-rate mortgage averaged 3.55%, up from 3.52%. (MarketWatch)

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.30%, down two basis points during the week. (MarketWatch)

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Rates will always fluctuate one way or the other. This is a cyclical process that is dependent on the supply and demand market trends.

This is a good time to look for a home to buy if you have been in the market to purchase. Since rates are slightly higher, this will defer other home buyers for now until rates come back down. Ultimately, this will cause some of the home prices to go down slightly since demand is weakening.

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If you are really set on waiting for the rates to come back down before purchasing or refinancing, consider some home renovations. The Real Estate world is quiet this time of the year. It is a good time to plan some home renovation projects for 2017. Home Contractors are not as busy this time of the year which is good for prospective renovation projects.

 

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