The first signs of spring are all around us, and as we enter a new home buying season, potential home shoppers who are planning to apply for a mortgage might want to hurry. While the sun is shining and the snow begins to melt, let’s discuss the current state of mortgage rates that might not be around for much longer:
After three weeks of unchanged rates, the average mortgage rate for a 30-year fixed loan jumped 8 basis points to 2.81%, reaching its highest point since mid-November, according to Freddie Mac. But guess what—looking back a decade, that same 30-year fixed mortgage in 1981 saw an average of 16.63%. What does this mean for you? If you have not refinanced and/or thinking about making a move, now is the time!
We are projected to see inflation in the third and fourth quarters of this year, which means housing prices are projected to continue to rise on average by 4.5% by the end of the year, according to Brian Kludt from Fairway Mortgage. So, if a home is for sale today at $300,000, you can expect it to be for sale for $317,000 by the end of the year. While this is better for sellers than buyers, keep in mind amortization schedules and what an increase of $17,000 will do to your monthly payments over 30 years.
It’s important to find a lender who is reputable, easy to work with, and leaves you feeling confident throughout the entire mortgage procedure. You don’t want any unforeseen financing roadblocks preventing you from getting to your closing date on time and losing the home of your dreams.
We are pleased to recommend a number of local lenders – for those of you needing some suggestions, please contact us. We have many to choose from that have all been great to work with.
We at Double Boldt Real Estate understand the real estate journey can be a stressful and emotional process—and we promise to stand by your side the entire time. You won’t find anyone with as much passion for real estate and compassion for their clients. If your goal in 2021 is to buy a home, get started with us today: (414) 807-6812 or firstname.lastname@example.org
Double Boldt Real Estate is a proud affiliate of Keller Williams and is located in the heart of Wauwatosa. The team at Double Boldt has deep knowledge of the Wauwatosa, Elm Grove and Brookfield real estate markets, and have more than 15 years of experience buying, selling and staging homes, as well prospecting and negotiating. To learn more about Double Boldt Real Estate, visit doubleboldt.com.