As you can see from the chart courtesy of Aaron Hoy at Capstone Home Loans, we are still at a historically low rate. With rates expected to reach levels around 5% by the end of 2018 does this impact your plans? For some just excited to buy their first home it will impact what they can purchase. This could cause that person to purchase something smaller, needing a little more work, or in a slightly different area. Is this a reason not to purchase? I don’t feel that way at all. Prices are still going up and while we could see prices slow by end of 2018 into 2019, they will still be going up. Even a loan at 5% is fantastic. We have been spoiled now with several years below or near 4%.
In my opinion if the rates go up to 5% or slightly over this year the impact on the overall market will be very small. Each persons situation is unique and some will feel the hit with a slight bump in rate as noted in the example above. For most it will just be an adjustment to what/where they purchase.
Buying a home now will set you up for your future plans. Owning a home is likely the largest investment you will make. Is it always easy, no. I am here to help guide you through the process you make sure it is a good investment for you.