It's almost the end of 2018 and the market is changing. Interest rates are 1 point higher than they were a year ago.  House prices have skyrocketed over the last couple of years.  The average Days On Market is longer than it used to be.  Price reductions have crept back in.  In some markets, sometimes even markets within markets, we have already seen the total months of inventory go from 1 month to 4-6 months.  

With change comes change.  New loan amounts are coming out allowing buyers to have more buying power.  With higher limits on conventional conforming loans and rumored to be coming on FHA loans, buyers have more spending power.  Mortgage partner Becky Alley from Capital Mortgage Funding helps break it down in the video below.

Also, what's going on with rates?  What's it mean for you?  Becky has the answers!  More of a breakdown below the video too.

Rates aren't going to zero.  They never have, never did and never are going that low.  In fact, they're slowly climbing. As of November 30th, interest rates were 1 point higher than they were a year ago.  Overall, the interest rate is NOT the only factor for your purchase.  They're a factor, but not the deciding one.  Your payment and where you want your payment to be are the only factors that matter.  It's best to go over your goals, interests and finances with a professional like Becky.  A true mortgage professional understands the bigger picture and helps you attain your financial goals.  While rates are not the overall determining factor, they clearly play a role.  Your payment if closing on November 30, 2018 would be lower than November 30, 2019.  If you're waiting on the rates to lower, STOP! If you're worried about how much higher they may be in the future, it is recommended you consider acting sooner rather than later.  

As interest rates rise, so will rent prices.  Landlords capitalize on people struggling to qualify to buy the home they want.  It is best to speak with financial professionals, determine your goals, and do what is best for you at this time.  Speak with your financial planner (or ask for a referral to one), speak to your mortgage professional (or ask for a referral to one) and speak to your CPA (or ask for a referral to one) and make 2019 your best year ever.

If you or somebody you know can benefit from this or other information, please share and put them in touch with me.  Do you know somebody looking to buy or sell real estate now or in 2019?  I can help!