Mortgage News: Now could be the Right Time to Buy a New Home

By Gabriel Traverso
Local Lender Columnist
Aug 31, 2007
Mortgage rates, while still at historical lows given the past few decades, might be heading back up. Washington, with a few exceptions, is seeing the same house value decline as that affecting much of the country, but this could turn around sooner than you think.

Mortgage Timing: Get Your Home Loan before Rates Spike Again

In spite of a short term spike in mortgage rates the number of mortgage applications recently went up, a sure indicator that many consumers are thinking the same thing you are: this summer looks hot for a new home! Rates for both fixed mortgages and adjustable rate mortgages spiked this month to a one-year high and some industry experts think they're going to continue rising. FreddieMac projects the 30-year fixed mortgage rate to steadily climb to 6.8% by the end of next year. For homebuyers interested in getting the lowest possible rate on their new home loan the time to buy is now--before rates increase further.

Home Prices down Now, but Expected to Recover

Currently, many of the nation's real estate markets are experiencing a slump. While some Washington markets, such as Seattle, are still holding strong, Washington homes haven't been untouched by the nearly nationwide decline. However, this could change sooner than you expect. With prices down in many areas, consumers are applying for new home loans and this could have the effect of bringing prices back up. Is it a buyer's market right now? Absolutely--but it doesn't last forever. The National Association of Realtors® is predicting that home prices will rise almost 2% next year after this year's steady decline.

If you've been hemming and hawing about your new home purchase consider a combination of low prices coming back up with low mortgage rates on the rise and ask yourself: is now the right time or not?

Sources
CNNMoney.com
FreddieMac
National Association of Realtors

About the Author
Gabriel Traverso is a freelance writer, professional musician, and an artist. He resides with his family in Reno, NV.