Is now a good time to buy, sell or refinance? Find out here.
Is it still a good time to buy, sell, or refinance a home? Today I’ll address all three of these questions:
Buying a Home
In the past week or so, the Federal Reserve has signaled they’re going to cut back on the number of mortgage bonds they purchase on a monthly basis. Essentially, they’re cutting back on the stimulus, which has pushed interest rates on 30-year mortgages up 12 or 15 basis points.
The good news is that we’re still hovering somewhere around the ridiculously low rate of 3.5% for 30-year mortgages. Ultimately, now is still a good time to buy a home.
Selling a Home
It’s also still an incredible time to sell a home. In September, inventory levels pushed down the total unit sales by 9%. Everything is connected to the fact that there aren’t many homes for sale. Despite the seasonality of the market, we can still get you into a new home while we sell your current home.
Refinancing a Home
Finally, it’s also a great time to refinance. There are a couple of points you should consider first, however. For one, you should be saving 1.5% of what you’re paying versus what you’ll be getting. So right now, if your rate is going to be 3.5%, you should be saving 4.5%, 5%, or more to get some benefit from refinancing. It’s also only going to be worthwhile if you plan to stay in your home for at least another two years to get the payout.
If you’re looking for recommendations on mortgage lenders who can help you refinance or get you ready to purchase a home, feel free to give me a call or shoot me an email. I’d be happy to help you.