If you are in the market to buy or sell Tamo O’ Shanter real estate, you likely are keeping an eye on the mortgage rates. After all, even the littlest change can impact your buying power. Interestingly, the past couple months saw hikes as the Federal Reserve raised the interest rates. This created pressure for buyers as they were already feeling the stress of being in a sellers market. Add in a higher mortgage rate and some folks were left wondering if renting was going to be their only option for the next year or two. If you are in the market to buy Tam O’ Shanter real estate, the latest change in mortgage interest rates is likely good news. For the first time in months, rates are back down below 4%. This drop comes after experts predicted a hike in interest rates. If this news causes you to feel like you can press pause on buying real estate in Tam O’ Shanter, don’t get too comfortable. There are two more interest rate hikes on the horizon for 2017, so getting in on a historically low rate again isn’t expected to be the standard for the next year. Of course, inventory is a struggle for several buyers out there as this particular Bellevue, WA real estate neighborhood has a month supply of 0.9. Which means even if you locked in a historically low rate, you will still have your work cut out for you this spring and summer season as homes are currently getting multiple offers within days of being listed. As the local Tam O’ Shanter Realtor, I am aware of off market homes and have been able to successfully connect buyers and sellers without the hassle of a bidding war and extra competition.
You may be wondering what exactly is going on that would cause the rates to drop below 4% again. In a nutshell, while mortgage interest rates are influenced by the short term interest rates set forth by the Federal Reserve, they are mostly impacted by the 10 year U.S. Treasury bond market. Investors consider mortgages and bonds safer in comparison to the stock market. 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 Tam O’ Shanter real estate. It changes how much you can spend, especially if your budget is strict. When you have a lower monthly mortgage rate, you have a lower monthly payment. As there is no way to predict how long the existing rates will last, it is best to take advantage of the current opportunity soon. If you are looking to buy a home for sale in Tam O’ Shanter, call me and I will happily guide you through this exciting process.