Today we are following up on our last blog post about how interest rates impact real estate buying power. Many of our clients are interested to know more about interest rate predictions, making it easier to choose the right timeline to buy a home. Here are a few things that you should keep in mind about anticipated interest rate trends:
Interest Rates Should Hold for Awhile
Even though it is hard to anticipate exactly how long the low interest rates will hold, experts are saying that the current rates will probably hold for a while. With the fluctuating economic trends around the world, it is likely that interest rates in the United States will stay low.
For example, the recent Brexit announcement spooked some of the markets. Also, there are other developed countries that currently have negative interest rates in an attempt to boost the local economy. Since the United States is the currency reserve for most of the world, it would be harmful to increase interest rates dramatically.
What if the Interest Rates Go Up?
Even if interest rates increase, the changes will be small. The Federal Reserve knows that drastic interest rate increases would have a negative impact on our economy. So, they typically make these changes incrementally.
You can talk with a mortgage lender to learn more about how the interest rates will impact your mortgage. Small changes in the rates might slightly increase your monthly payment. But, most people can handle the difference.
The best strategy is to maintain a good credit score, which will have a positive impact on the interest rates that are offered. Mortgage rates go up if the lender views a buyer as a risk. So, you can decrease your interest costs by showing that you are a reliable person for the loan.
Preparing to Manage Interest Rate Changes
If the Federal Reserve decides to increase interest rates, it will be a few months before those changes take effect. So, you still have time to buy a home and close on the transaction before the rates go up. Any first-time home buyers or homeowners that are thinking about upgrading their home should talk with a real estate agent as soon as possible to get started.
Since the interest rates are low, it is a great opportunity to find the right home for you family. Whether you need more bedrooms for the kids or you are looking for a better house to host friends, there are many options available for you to choose from.
Our team at DUFFY Realty wants to help you find your dream home while the interest rates are low. Contact us right away to learn more about the homes that are currently available in the Atlanta real estate market. We are here to help your family: (678) 318-1700