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Reasons to Buy Now 

Mortgage rates now are around 6%, fluctuating between 5.875% and 6.25%. This is about 1% lower than 12 months ago.

Local Mortgage Rates

As of October 15, mortgage rates with no points were:

15-Year Conventional Fixed 5.625%

30-Year Conventional Fixed 6.00%

FHA 30 Year Fixed 5.875%

VA 30 Year Fixed 6.00%

30-Year Jumbo 6.00%

1. Mortgage Rates May Be As Low Now As Next Spring

It is possible that today’s rate of 5.875%-6.25% is still comparable to rates projected for next spring.  Many would be buyers mistakenly believed that residential mortgage rates would move lower after the Federal Reserve lowered their benchmark overnight borrowing rate. Instead, in October we saw mortgage rates rise. Bond yields again moved higher because Yellen must sell more bonds to cover ever rising government spending, and investors demand higher yields. Both presidential candidates are likely to continue higher spending, which fuels inflation and makes it likely that mortgage rates will be higher for longer.

2. Home Prices Will Keep Increasing

Home prices in our region continue to appreciate. It is possible the home you don’t buy now will cost 2%-3% more next year.

3. Greater Competition & Tougher Negotiations

Buyers are likely to encounter more challenging negotiations and multiple offers, as well as upward pressure on home prices caused by an influx of buyers lured from the sidelines by potentially falling mortgage rates.