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The question for today is, what are the current interest rates, and what can we predict from them moving forward into 2017?
What are current interest rates, and what can we predict from them moving forward?
Right now, interest rates seem to be averaging 3.5% with APR at 4.6%. The average inventory for the state of Maryland is roughly five months. We’re currently in a market where sellers are receiving multiple offers on properties, and this is strictly due to interest rates being low enough to allow the buyer more purchasing power.
If the interest rates were to increase, what would that do to the seller’s bottom line? If they creep up to 6% or 7%, we could potentially see the market shift into a buyer’s market. That would mean that there would be more inventory and lower sales prices.
If you’re looking to sell a home, it’s a great opportunity to get more offers on your property. If you’re looking to buy a home, rates are historically low as far as paying a 30-year mortgage. You can also take advantage of a 15-year mortgage by paying that down much quicker. In either case, you’ll want to talk to your lender about your options and do your own research on the amortization of the loan to calculate how much money you’d be putting toward the principal each month.
I do see 2017 staying somewhat the same, but it would not surprise me to see interest rates tick upward.
If you’re thinking of buying or selling a home, please don’t hesitate to contact me for a free real estate consultation. I look forward to hearing from you!
