Hello and welcome. This is Nolan with Discover NC Homes and “Nolan’s News”. And as always a thank you for having us. Today I want to talk about interest rates.
They have been at a historic low for the past few years and a lot of forecasts and predictions say that they are going to finally start increasing.
Right now on a 30-year fixed without any points paid or any fees paid you should be able to get – again, a 30 year fixed – for 3% – 3.5%. Some analysts are saying by the end of first quarter next year, 2022, rates could climb as high as .75 to a full point. So we could see 3.75% – 4%.
Why is this?
Interest rates historically do not like inflation. I think everyone’s seen over the last few years from a loaf of bread to milk to a car, the price of items in our country have increased dramatically. So inflation is happening.
Historically too, when the stock market is up, which I think we could say it’s been up for the last few years, interest rates are also up. The Feds have been purchasing a number of the mortgage backed securities, but they announced not too long ago that they’re going to start tapering this off. So that means if the stock market continues to stay up, interest rates will most likely also increase.
So the point of this is: buyers buy now! Your interest rate could be a full percent higher in the next first – second quarter of next year. On, say, a $400,000 purchase, that’s over $200 a month in your monthly payments. So that equates to $200 a month in savings if you were to buy a $400,000 home now versus second or third quarter next year.
No inventory is limited, but if it’s out there, I would say, try and purchase before the interest rates go up.
If you have any questions, if you have any interest rate questions, please let us know, contact us anytime. Thank you so much.
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