If you’ve been considering pulling the trigger on a new home or vacation rental, this is something to consider: mortgage rates are on their way up. They’re still at a low rate of 4.05%, but all signs point to the possibility of a continued increase as we go forward.
On Thursday Freddie Mac said that the average rate on 30-year fixed-rate home loan rose to 4.05 percent from 4.02 percent last week. A year ago the rate was at 3.57 percent, and in 2016 it averaged 3.65. That was the lowest since recording started, in 1971. The rate on 15-year mortgages inched up this week to 3.29 percent.
Freddie Mac surveys lenders across the United States during Monday, Tuesday, and Wednesday every week to calculate average mortgage rates. This average does not include points. The average fee remained at 0.5 point for a 30-year mortgage and 15-year loans.
What this means to you is that, as time marches on, rates are likely to go up, so waiting may cost you. The good news is that the economy is growing steadily, and the housing market in Florida has definitely rebounded and is back in the healthy zone.
A wise man who has spent 50 years plus in the real estate investment market once told me to view real estate as an eight year cycle. Obviously, not every cycle ends in a disastrous crash like the one Florida began experiencing in 2008, with the rest of the nation following. That was an epic crash. Most cycles just slow to a dip, but there is always a dip. Right now we’re in the upward end of the cycle, meaning buying now, especially with low interests rates, will allow you to get in while the market is climbing.
As you know, there are no guarantees in any investment, real estate or otherwise. But one thing you do know is that Anna Maria Island is a very desirable place to buy, because people will always want to buy here, no matter the state of the market.
If you’re considering moving to Anna Maria Island or purchasing a vacation rental home in the area, I can help. I’ll give you the straight up truth about what it’s like to live here and I’ll answer any questions you have. I can also keep you updated on properties that come on the market and fit your criteria. Email me or call my cell at 570-878-6098.