You hear it everywhere you go; mortgage interest rates are at historic lows, as low as 4.3%! Right now, the Mortgage Bankers Association’s (MBAA) economic forecast predicts that rates will rise above 5% in 2011 and still higher from there. But how long will mortgage interest rates stay low?
Not forever, according to the MBAA. Although the consensus is that rates on the 30-year fixed-rate mortgage will average an enticing 4.4% in the fourth quarter of 2010, they will eventually climb to at least 5.1% in 2011 (barring any major announcements from the Fed, MBA economist Jay Brinkmann told MSN Money Central partner Marketwatch). A steady climb, which may well accelerate. And as most can imagine, that can certainly affect home sales. Rate increases mean home buyers risk having to settle for less house or not qualify at all for a home that they could purchase right now.
The forecast predicts home sales will rise next year, after dropping in 2010 from 2009 levels. The culmination of this data indicates that now is the best time to buy. Sales of existing homes will finish 2010 about 8% lower than last year, but sales should rise 2% next year and 16% in 2012.
And, sales of new homes will finish 2010 13% lower than 2009, but should rise from that low base by 20% next year and 40% in 2012. It’s a lot of data to digest…so what’s the value to you…it means you will be smart to take advantage of your ability to buy more home for less money, a lot less, now. Keystone Custom Homes Online New Home Advisor will help you explore your options to be able to purchase a new home now! Call today 1-877-513-0385!