The question at the top of the list for Kenai Peninsula residents thinking about buying a
home is the one about mortgage rates. May’s
rates are certainly low (really, really low: south of 4%)…but is it
worthwhile to wait for them to head lower? Even more to the point, what are the
odds they will suddenly reverse and jump through the roof?
If there were a dependable answer to that question, it would be well known. Of course, there isn’t – there are so
many economic conditions that could cause mortgage rates to change, no one can
be certain of the answer. But there is no shortage of pundits willing to try.
According to Bankrate.com last week 21% of their panelists believed mortgage
rates would rise this week, 21% thought rates
would fall, and the rest believe rates will remain relatively unchanged (+ or –
2 basis points). Their published opinions change every week — I follow them, and it’s unusual for the
experts to be exactly divided about the direction — but that’s where
they stand at the moment.
This would be almost comical were it not so important to anyone buying a home: those rates determine your purchasing
power — the whole basis of your home search.
It’s an important factor to address early on. So how can anyone even start
to go about buying a home?
Acknowledging reality is always the place to begin. Current economic conditions are keeping rates low for the time
being, but this low yield can’t last forever. Since change (in either
direction) is the only condition certain to occur, to begin the process of
buying a home, draw plans based on that current reality. Then keep your eyes
open for changes should they occur. This is also where thorough preparation
lets you take charge. If you have been pre-approved by one of our Kenai Peninsula lenders, you will be ready to lock
down the right deal when it is offered – rates and all. Then, for you, the
guessing game will be over.
If you are buying a home and want to take advantage of today’s rates, an experienced mortgage broker will help you
gain access to the different lending programs available from differing banks,
even potentially securing a lower rate than you would get on your own. The difference in percentages and points can
have positive impacts on your monthly payment.
If you’re considering buying a home, I can help you prepare to put yourself in the position to take advantage of any
and all conditions that present themselves. I hope you will turn to me as your
local real estate expert: call me anytime with questions!