As mortgage rates are hitting a 21-year high there are signs of the housing market cooling down. Many experts predict that home prices will slump over the next few months, reaching a low around January. If you are in the market to purchase a home, there are currently many advantages in the current market, such as; seller paid closing costs, seller paid buy down to lower monthly payments, seller paid repairs, price negotiation, accepting a longer contingency period, less competing offers and no need to waive appraisal contingencies.
Short-term interest rates (such as credit card rates) will rise with a rising Fed Funds Rate. The US inflation rate is at 8.2% as of September 2022. Living, food and energy costs have increased significantly. Many have added these bills to their credit cards. It is vital to review monthly expenses to determine how to allocate income in a more efficient method. Refinancing a mortgage is possible and could make sense despite the more favorable interest rate you currently have. Although the current 30-year fixed rate is at approximately 7%, it is expected to continue to rise throughout the rest of 2022.
Contact me at (925)-216-3618 today to discuss the purchase or refinance possibilities in todays market.
