Tuesday, July 23, 2013

Still Great Time to Buy NOVA Real Estate— Despite Rising Mortgage Rates!

The rapidly rising mortgage rates over the past few months have had relatively little effect on home sales in the area, although their increases may alter the recovery in the near future.

Economists in Fannie Mae's Economic Strategic Report for July say the rising rates could actually hamper the recovery as the increases have been significant. "The 30-year fixed-rate mortgage has risen more than 110 basis points from the first week of May to the end of June," stated the report. It is the sudden rise in the rates in such a short period of time that has the economists worried.

And it may be scaring some NOVA homebuyers— mortgage applications for home purchases have fallen around 9 percent since early May when the rises began. However, it was during this time that the pending home sales rose to their highest level in more than six years, many of which were cash purchases that may not have been necessarily tied to rising mortgage rates.

So, do you stay or do you buy now before it's too late? Real estate experts say even with the dramatic increases, rates are still near the historically low levels. Home sales, which have been nearly untouched by these factors, are predicted to rise about 8 percent in 2013 with the median home price at $189,000 for existing homes and $276,000 for new homes, according to Realtor Magazine.

Contact us today to begin the process of buying a home in NOVA. It's still a great time to buy!


Earle Whitmore
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