Mortgage Rates Inching Upward but Still Historically Low
Mortgage rates are expected to gradually increase into the summer. The good news is that mortgage rates still remain historically low. Purchasing a home now remains attractive for home buyers.
Anticipated Mortgage Rate Increase based on Federal Reserve Projections
The Federal Reserve raised its short-term interest rate target range by 25 basis points to a range of 0.75% to 1.00% in March. The financial markets rallied after Fed Chair Janet Yellen expressed confidence in the economy and stated the Fed intended to take a gradual approach to future interest rate hikes.
Two more interest rate hikes are expected by the end of the year. The fed funds futures market is currently projecting:
- a 58.3% probability for the next 0.25% rate hike to take place on June 14
- a 64.5% chance of a rate hike on July 26, and
- an 80% probability for a hike on September 20
What Does this Mean for You?
Now is the time to act if you are planning to buy a home. As rates continue to rise, so will the cost of home ownership. Take the steps you need to position yourself for homeownership.
Start by getting your finances in order and seek preapproval for a loan. Going through the preapproval process with a reliable local lender helps you determine financing options. It will also will help you match your price range and comfort level with homes on the market. In our current seller’s market, preapproval can increase your negotiating power and set you apart from your competition.
For more information on preapproval, specific rates or mortgage options, feel free to email or call me at Bob@BobStrandell.com, 952.905.5500.
Mortgage banker and guest blogger Bob Strandell has been helping homeowners purchase or refinance their homes, investment properties or lake homes since 1985. The top producer at Bell Bank Mortgage, Bob was also recognized as Minnesota Loan Officer of the Year by the Minnesota Association of Mortgage Bankers.