Mortgage rates have been increasing lately. It can be very frustrating as a prospective home buyer, but there is good reason for it. This blog post explains why interest rates are increasing, who is responsible for causing these rates to increase and why it isn't the worst thing ever (albeit frustrating). While rates were bumped a couple of times at the end of 2016, we're expecting them to be raised more than once in 2017. If you're worried that these rising interest rates are going to keep you from buying, don't fret- the increase is pretty nominal on an average house, but I would certainly recommend talking to mortgage lender about your borrower power before you file your taxes next month. A good lender can suggest some things that can have a big affect on your borrowing power later down the line. As always, remember me if you're interested in buying or selling residential, investment or commercial real estate in Charleston!
Mortgage rates have been near historic lows lately, which is causing a major increase in home buying. That is great news and it most certainly helps our economy as a whole. Now that the Federal Reserve is starting to see a healthy real estate market, they plan to increase our rates a small amount to try to recoup some surplus funds for Federal spending. The Federal Reserve adjusts this interest rate depending on the performance of our economy, as well as international events that may harm of benefit our National economy. This post just states the current rates and what we should expect to see in the coming days. Remember me if you're interested in buying or selling residential, commercial or investment real estate in Charleston, SC!
Congress works with various other Government entities and Government-affiliated organizations to help homebuyers purchase homes. They mainly responsible for setting the rules and regulations that Government-endorsed lending agencies like Fannie Mae and Freddie Mac follow to underwrite loans. Congress wants to bolster homeownership since the country has rebounded from the recession. The National Association of Realtors is urging Congress to loosening up on some of their lending restrictions in order to increase the number of new homeowners across the country. One major hurdle that many people face is their lack of stellar credit. NAR would like to see Congress reform their credit requirements to see a huge increase in homebuyers. Remember me if you're interested in buying or selling residential, commercial or investment real estate in Charleston, South Carolina!
The Federal Reserve is the organization that is responsible for things like the nation-wide standard interest rates on loans and lines of credit. Due to our national deficit, the Fed has been considering raising our interest rates to try to reduce our national debt. They've been considering this for quite some time. Our national deficit was made even more substantial during the recession when consumer spending was at a low. The Fed was hesitant to increase these rates because they were afraid it would slow down consumption and slow down recovery. Now that the economy seems to be turned around, they are once again considering increasing our rates. If they do so, this blog post discusses some of the ways that Americans will be affected. Remember me if you're interested in buying or selling residential, commercial or investment properties in Charleston, SC!