It’s Time To Lock In Your Low Mortgage Rate

Homes are selling first-day, sight-unseen.  People are going crazy for houses that would have sat on the market for months in previous markets.  Why?  Interest rates are still low, and housing inventory is also low, making this a seller’s market.  However, it’s still a great time to buy, since you can lock in a low-interest rate and gain an asset that is increasing in value. It’s also a great time to refinance since your home is gaining value and rates are still low, meaning you could gain equity and lower your monthly payment.  It’s time to lock in your low mortgage rate.

Low rates don’t last forever

The fed has pledged to raise rates this year.  They control the base rate and will raise it when the economy is going well to help businesses.  Their base rate increase raises interest rates on everything from houses to cars to credit cards.  This means that, at some point, these low rates will go away.  You need to get it locked down before they do.

Homes are being built, but not fast enough

The home inventory crunch is real.  Companies shied away from building after the 2008 market correction, and that means that not enough new homes are available.  While companies are getting homes built, it’s not a quick process.  Builders didn’t anticipate this demand.  If you currently own a home, it’s great for you because your home’s value is rising quickly.  If you’re buying, it’s not the end of the world, you just have to be careful about your shopping.

Rents are rising

If you’re renting, you know that the rates are rising.  It’s supply and demand.  If there isn’t enough inventory to go around, they can raise the price.  That’s why renting isn’t a viable long-term strategy.  Rising rents will also make it more difficult to save up for a down payment or pay off your bills to lower your debt-to-income ratio.

If you’re ready to refinance your home, call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you.  Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?

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