In much of the country, both new and existing home sales increased in January. This continues a trend first noticed in an extremely busy December, and also signals we are seeing more than just a post-election and World Series bump. Now is the right time to buy with mortgage rates going up.
On Wednesday, the Federal Reserve raised its benchmark interest rate and signaled the likelihood of additional rate hikes later this year, home buyers will see mortgage interest rates go up. As of March 2017, according to Bankrate, the rate on a 30-year fixed mortgage has increased by 81 basis point since before the election, in which time the Federal Reserve has raised interest rates once. While the Fed does not have the ability to directly set mortgage rates, it does create the monetary policies that indirectly affect these rates. [Read more…]