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Mortgage Rates on FIRE! Get Off the Fence or Get Burned.

Home Blog Real Estate News Mortgage Rates on FIRE! Get Off the Fence or Get Burned.

Though we’re still well short of the double-digit interest rates of the 1980’s, mortgage interest rates are definitely on the way up!

Mortgage interest rates have already risen by over a quarter of a percentage point in 2018. Many are projecting that rates could increase to 5% by the end of the year. Many quickly jump to the conclusion that an increase in mortgage rates will have a detrimental impact on real estate prices as fewer buyers will be able to qualify for a loan. This seems logical; if there is less demand for housing then prices will drop. However, in a good economy, rising mortgage rates increase demand as many prospective purchasers immediately jump off the fence to guarantee they get the lower rate.

Is now the perfect time to buy a new house so that you can lock in the current ‘low’ rates?  Let us know what you think in the Comments section below.

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