If you have been thinking about buying Incline Village real estate, you have probably been keeping an eye on the mortgage interest rates. For the last several months the rates for a 30 year fixed mortgage rate have stayed roughly around 3.5%. Just last week they made the jump up to 3.94%.
Why Did They Increase?
This is typical after a presidential election. There is always uncertainty in the markets on who will win and many investors will pull their funds from the less predictable stocks and choose Treasury Bonds. Once the election has ended, investors return to the market forcing the Treasury to raise the bond rates. Basically, if the economy is in good shape, the interest rates go up.
What Does This Mean For You?
Well the good news is that even though rates are higher than they have been in the last several months, they are still lower than where they started in 2016. In fact, at almost 4%, the mortgage interest rates on Incline Village real estate are still the lowest they have been in over 4 decades.
The bad news is that when interest rates increase, so does your monthly housing cost. If you have wiggle room in your budget, this increase likely won’t phase you. However, if your budget is strict and your mortgage is being taken up by a higher interest rate, you may have to shop in a lower price bracket when looking at homes for sale in Incline Village, NV.
Don’t let this news discourage you from buying just yet! Rates would have to hit 9.1% before it would make renting cheaper than buying a home for sale in Incline Village, NV. Interest rates were also predicted by market experts to increase by the end of 2016 so this hike is no surprise. To ensure you get the most bang for your buck, don’t wait for interest rates to go up more. If you are looking for a home for sale in Incline Village, NV, give us a call!