Rising mortgage rates have been the big story in real estate this year. However, buyers are still in the market, adjusting to the “new normal” and confident their dream home is within reach. National mortgage lender – and @properties Christie’s International Real Estate strategic partner – Proper Rate, notes that thoughtful planning and a wide range of available loan products can help buyers and sellers deal with the evolving market conditions.
Unless you were recently rescued from a desert island or returned to earth from deep space, you’ve probably heard the news that mortgage interest rates have been on the rise. In fact, the average rate on a 30-year fixed-rate mortgage has almost doubled since the beginning of the year. But buyers who have been battling rising rates aren’t entirely powerless against the trend, and one tool for locking in below-market rates has been gaining favor – mortgage points.
Mortgage points haven’t been in the home-finance conversation for a while because interest rates have maintained a historic downward trajectory for the past 15 years. However, in today’s rising-rate environment, “paying points” is worth a closer look.
With interest rates rising amid high inflation, it can be a challenging time to save for a down payment and break into the housing market. However, there are a variety of things both large and small that can immediately shave costs and grow your nest egg – perhaps even faster than you anticipated. Here are a few tips:
Begin by auditing all your expenses each month and know exactly where your money is going. This may sound obvious, but forgotten expenditures add up and can often be scaled back. This is where you’ll notice subscriptions and streaming services you may not use, or insurance policies that you are potentially overpaying on. Take the time to cancel items or renegotiate how much you’re paying for certain things, and you’ll soon tally up savings.
Last month, the Federal Reserve implemented its second interest rate hike of the year and indicated there could be two more rate hikes to come in 2018. Understandably, the news created some buzz in the housing market as the Fed Funds Rate affects mortgage rates.
While mortgage rates have been gradually on the rise, it shouldn’t deter prospective buyers from purchasing a home if they have the means to do so. Here are a few things home buyers and sellers should keep in mind: