Due to stronger economic growth since mid-2016, post-election uncertainty and several other factors, we have experienced an abrupt rise in interest rates. The market has been volatile, causing day to day fluctuations….which means if your rate isn’t locked today, it may not be available tomorrow. This, coupled with home values continuing to steadily increase and the economy improving, means time may be running out. In short, now is the time to buy while affordability levels are still low.
Just recently CNBC posted an article stating that the increase in mortgage rates has not stopped mortgage applications from pouring in: “Mortgage application volume rose 4 percent from the previous week”, and “lenders saw no letup in loan demand.” Las Vegas home sales also continue to rise which makes this the perfect opportunity for buyers to find what they are looking for.
In addition, December 2015 also saw the first rate hike from the Federal Reserve rate since 2006. Then again on December 14, 2016, the Fed announced its second rate hike in less than a year. Projections have been made that we can expect several more increases in the Federal Reserve rate in 2017, which could have a direct effect on mortgage rates. These are just a few of the many reasons why we are urging buyers to take advantage of the current market and get locked in before rates rise.
Contact your loan officer today to discuss getting pre-approved, or apply online at www.awmlending.com.