The Fed has announced an increase of .25% in the base lending rate. This is not a huge hike and remember mortgage rates are still historically low but this is the first of series of rate hikes. This will soon trickle down to the mortgage interest rates and other vehicles of credit.
So What does this mean for you?
- If you have a rate lock or if you are in escrow you should make sure your current locked in rate is still valid by calling your lender.
- Your monthly mortgage payment may well be higher as interest rates rise and so the amount you qualify for could be less and so could price you out of the home you want.
- If you are looking to purchase soon you should talk to a lender and get locked in. Locking in an interest rate can only be done once a proper is found so call your real estate agent today to find that property
- If you are looking to sell your home list now before it becomes harder for buyers to qualify for the mortgage they may need to purchase your home.