One thing that has become clear since the election in November is that Americans are becoming more confident in the future of their own personal finances and the economy in general. Which is for the most part a positive thing, but one inevitability that comes with this kind of confidence and improved economic performance is a slow but steady rise in interest rates.
This appears to be something that hasn’t escaped the attention of potential house buyers, with new data published over the weekend having suggested that the imminence of higher interest rates is encouraging a growing number of US citizens to dive into the housing market.
In the latest University of Michigan consumer sentiment survey, approximately one in every five respondents stated that they believe now represents a good time to take out a mortgage and buy a home. This is the highest level recorded in over two decades.
In the days and weeks that followed the November election, borrowing costs jumped close to one full percentage point, having rested at near-historic lows for some time prior. But even with the increases that have crept into the equation so far, interest rates across the board still remain comparatively low. In fact, despite there being a relatively significant surge toward the end of 2016, Freddie Mac nonetheless confirmed that the year brought the lowest average interest rates on record.
And it’s not as if mortgage interest rates didn’t once again creep back down a little lower – even now we’re looking at a 4.19% average for 30-year fixed rate mortgage products, down from the 4.32% recorded at the close of December.
Still, it is largely taken as unavoidable at this stage that economic improvement will lead to a slow but steady rise in interest rates over the coming months. As such, experts are once again warning those with the intention of obtaining financial products or making a move in the housing market that further procrastination could prove costly over the long-term.Advertisement