If you have been thinking about buying Lynden, WA real estate, you have probably been keeping an eye on the mortgage interest rates. For the last several months the rates for a 30 year fixed mortgage rate have been around 3.5%. Just last week they made the jump up to 3.94%. While this is typical after a presidential election, this has also been forecasted to happen by the end of the year. So what does this mean for you if you have been searching for real estate in Lynden, WA?
The bad news is that when interest rates increase, so does your monthly housing cost. If you have wiggle room in your budget, you may be able to make a purchase on a home for sale in Lynden, WA work just fine. However, if your budget is strict and your mortgage is being taken up by a higher interest rate, you may have less left over for the actual house price meaning you may have to shop in a lower price bracket than you had originally planned.
The good news is that even though rates are higher than they have been in the last several months, they are still lower than where they started in 2016. In fact, at almost 4%, the mortgage interest rates on Lynden, WA real estate are still the lowest they have been in over 4 decades.
Don’t let this news discourage you from buying though! Rates would have to hit 9.1% before it would make renting cheaper than buying a home. As previously stated, interest rates were also predicted by market experts to increase by the end of 2016 so this hike is not unexpected. In order to ensure you get the most bang for your buck, don’t wait for interest rates to go up more. If you are looking for a home for sale in Lynden, WA, give me a call at 360-410-0848.