According to a jobs report that was recently released, over 271,000 jobs have been created. Because of this, the economy will be on the rise which means good things for the real estate market. With more houses being sold, there is going to be a spike in mortgage rates. Experts think the mortgage rates are likely to go above 4%. The Federal Reserve was waiting for the economy to be on the rise before they increase the mortgage rates. This new report may be enough evidence for the Fed to assume the economy will continue recovering and that they should increase the interest rates.
Robert R. Johnson, the CEO of The American College of Financial Services, says, “This development is not good news for people looking to take out mortgage debt in the near future,” Johnson says. “Once the Fed starts raising rates,interest rates throughout the economy, including mortgage rates, auto loan rates and other loan rates will trend upward. I believe that anyone thinking about refinancing a mortgage or buying a home and taking out an initial mortgage should not wait, as rates will rise.”
John Wake, a real estate agent with HomeSmart here in Scottsdale also weighed in on the subject. “Many people expected the increase to be the first of many so they became even were more desperate to buy a house right away. Sure, in the long run higher rates hurt the demand for homes, but in the short and medium run they can stoke demand. It all depends on what people think an interest rate increase today means for interest rates tomorrow.”
Now is the perfect time to purchase a home in Desert Mountain before mortgage rates increase. Contact me at (602) 791-0536 or Carmen@TopScottsdaleHomes.com and we can schedule a showing of great Scottsdale real estate.
Realtor | Attorney
Trillium Properties, LLC
8755 E Bell Road, Suite 108 | Scottsdale AZ 85260
Cell (602) 791-0536
Office (800) 300-0263