If you are in the market to buy or sell Lynden, WA real estate, chances are you are keeping a close eye on the mortgage rates. After all, even the littlest change can have an impact on your ability to buy a home for sale in Lynden, WA. Interestingly enough, the past couple months saw hikes as the Federal Reserve raised the interest rate and it put a lot of pressure on buyers looking to purchase Lynden, WA real estate. Not only is the inventory low, but rates going up caused stress for some buyers hoping to get into the market at an affordable price AND an affordable interest rate. The good news is that interest rates are back down below 4% even though they were predicted to continue to increase. While there are two more interest rate hikes on the horizon for 2017, you can get in on a historically low rate yet again if you are purchasing a home for sale in Lynden, WA.
You may be wondering what exactly is going on that would cause the rates to drop. The important thing to know about mortgage interest rates is that while they are influenced by the short term interest rates set forth by the Federal Reserve, they are more impacted by the 10 year U.S. Treasury bond market. Investors consider mortgages and bonds safer compared to stock markets. When stocks increase, investors get nervous and put their funds into bonds. When bonds are up, mortgage interest rates go down. Currently, the U.S. stock market keeps climbing so investors are looking for safe places to put their money.
The littlest change in an interest rate can be a big change for someone looking to buy real estate in Lynden, WA. A small percentage increase adds up and can price you out of the home for sale in Lynden, WA that you may have had your heart set on. If your budget is strict, a lower mortgage rate means a lower monthly payment. If you wait, you could possibly face having a higher rate. As there is no way to predict how long the current trends will last, it is best to take advantage of the current opportunity soon. If you are looking to buy or sell real estate in Lynden, WA give me a call at 360-410-0848.