We are in the midst of a hot summer housing market, with buyers in the Dallas Fort Worth area currently enjoying some of the lowest mortgage rates in recent history. But are we in for a rude awakening?
Lawrence Yun, the chief economist for the National Association of Realtors recently forecasted that fixed mortgage rates could likely rise to 5% during the next year. He goes on to say “A sustained rise in rates will impact affordability and cut back home buying.” This is because higher costs for financing a home purchase means that fewer people can afford to buy one.
2015 could prove Yun right, as it has seen the 30-year-fixed mortgage rate consistently increasing since January’s reported 3.67%, and according to Freddie Mac, the rate is currently averaging around 4.09%. Though the rate this time last year was 4.12%, 2015’s track record should push any potential buyers towards a buying decision.
If you’re in the market to purchase a new home, there’s not a better time to buy than now, and I hope you’ll get started on your journey by contacting me to help you get your financing in place. You can reach me at 214-770-1499 or by completing my complimentary mortgage plan here.