Are you thinking about purchasing a home in Palm Beach County, Florida right now? If so, you should be aware of the slightly higher interest rates that are currently affecting the housing market as a result of a decision made by the Federal Reserve to hike up short-term interest rates by a quarter of a percent earlier this month.
But at the same time, this shouldn’t make you reconsider making your purchase. Despite this adjustment on the part of the Federal Reserve, now is still a great time to purchase a home, and if you wait too long, you might see additional interest rate hikes in the future that will make buying a home more expensive than it currently is.
The Federal Reserve interest rate hike didn’t come as a total surprise to most real estate industry analysts – after months of static rates, most financial experts knew it would come sooner or later. While interest rates for a 30-year fixed-rate mortgage loan are currently sitting at right around 3.5 percent, Lawrence Yun, chief economist for the National Association of Realtors, predicts rates could reach 4.5 percent within the next 12 months.
“We anticipate that rates may be 4.5 percent by the end of 2017,” he said recently to CBS News, “and that home prices will also march upward by 4 percent.”
Dan Smith, president of PrivatePlus Mortgage, was a bit more reserved, telling Florida Realtors that average rates could rise by as much as half a percent next year.
The Federal Reserve hike means that you will pay a little bit more on a typical 30-year mortgage than you would have prior to the hike, but according to Yun and many others, the homebuyers’ market is still “favorable,” which means you shouldn’t shy away from shopping for homes. If you are in the market for a new house, you can also benefit from the increasing value of homes as well, meaning that while you may spend a bit more, you should also expect to see the value of your investment rise, too. With many expecting interest rates to rise more as the economy continues to rebound from the Great Recession and housing bubble crises, now is a great time to get into a new property and start building your home and equity in real estate.
Leibowitz Realty Group has a large selection of properties available in the Palm Beach County area at the moment. Check out our listings online now or give us a call at 561-627-5100 to schedule a showing with one of our agents today.