Tom has been in the lending industry for over 15 years and is an excellent mortgage pro when it comes to Phoenix real estate. Here’s a post from him on interest rates:
A great question being asked in the market right now is “Will interest rates come back down?” and “Should I wait for rates to go back down?” The answer is “Do not wait.” and “Take action now!” Rates are clearly off of their best days and it is important to remember when I say “best days” I mean NEVER IN FINANCIAL HISTORY HAD MORTGAGE RATES BEEN SO LOW. Read that again and let it sink in. No one, not our grandparents or great grandparents had ever seen interest rates as low as they were in the last 12 months. It was the result of massive action taken to spur economic growth after the biggest financial disaster since the great depression.
You know what’s happening now? Stocks are soaring and the economy is moving and businesses are making money. What that means to you is there is no reason to think that rates HAVE to do anything. We are clearly on a long term trend upward in interest rates. We hit our bottom, thankfully for economic recovery. Will there be little dips and opportunities? You bet. Nothing moves in a straight line. But do not wait. These little windows are impossible to time.
Your opportunity to find the right house for you and your family is independent of trying to time an impossible market fluctuation that no one really knows will happen. If your 30yr rate is in the mid-to high 4s then that’s phenomenal because it’s going to eventually be the mid-high 5s. Opportunity is now. The next 1% rates move up will cost you $1836 per year in interest and $55,000 over the life of a $250,000 30yr loan. Take action now.
Your best opportunity to save money is seizing the interest rates in the moment and not looking to regain a rate which never happened before in financial history. Remember or ask your parents when 14% used to be an actual interest rate?
We live in a time of extraordinary opportunity sometimes we need to adjust our perspective to realize it.
To look for homes contact Joe Janus at 602.620.6267 or firstname.lastname@example.org.
Joe Janus, Realtor®
Cell Phone: 602.620.6267