Mortgage rates inched up this past week from 4.87% to 4.91% for a 30-year, fixed-rate mortgage, and from 4.1% to 4.13% for a 15-year, fixed-rate mortgage. According to Freddie Mac, rates on 30-year fixed mortgages have risen four weeks in a row; however, they remain below 5% as the market approaches home-buying season.
So is now the time to buy before they creep up even further? Or will the rates go back down to maintain affordability in the housing market?
Some home-buyers, whether they are retail buyers or investors, prefer to wait for the real estate market to bottom out before buying, hoping to get the lowest price possible for their purchase. But the fact is, you won’t really know when the market has bottomed out until it’s on its way back up.
The same could be true for mortgage rates. You could be waiting around for the rates to go back down, and before you know it they are inching up and you’re kicking yourself for trying to time the market.
Obviously, there are many variables when deciding whether or not you’re ready to buy your next home or investment property. If all you’re waiting for is better rates and lower prices, don’t wait too long or this buyer’s market will pass you by.