NOVA Homes Blog: Mortgage Rates and NoVA, DC Real Estate

Tuesday, December 3, 2013

Mortgage Rates and NoVA, DC Real Estate

For homebuyers in Northern Virginia and DC, mortgage rates on the rise are a cause for concern. They have been consistently rising over the past months, along with home values, and in NoVA real estate a common question may be— "When will they hit five percent?"

According to KCM, "the effect of a rise in mortgage rates could be a dramatic increase in the monthly mortgage payment when purchasing a home." For first-time homebuyers, that may mean you put a halt on your plans to buy a home this winter or for those looking to sell their home and move to a new home in Alexandria, Arlington, Falls Church, Fairfax City, or McLean, it may mean you hold off until the busy spring and summer buying seasons due to the fear of rising mortgage payments.

Mortgage rates seem to rule the roost when it comes to homes in NoVA and a rise can really stall home sales.

So what's the verdict? A recent article from HousingWire suggested, "most experts are projecting that rates will rise when the Fed decides to taper the purchase of bonds which has acted as a stimulus to the housing market by keeping long term mortgage rates at historic lows." The article also quoted the Chief Economist with Freddie Mac, who inferred:

"By the end of 2014, rates will probably approach and perhaps touch 5%. A reason we see the uptick in rates is that I do think some point the Federal Reserve will start to taper and scale back its very active purchase on long-term Treasuries and mortgage-backed securities."

NoVA homebuyers should take note that over the next year these rates will only continue to rise, inching toward five percent by the end of the year. Now is not only a great time to purchase Northern Virginia real estate due to the rising rates, but due to less competition and serious buyers in the market.

Contact me today to discuss buying a home this season! I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

Long & Foster Real Estate, Inc.
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When you first meet Earle, she greets you with a firm handshake and a broad smile. She has a certain charm and friendly nature that immediately set you at ease. As you talk to her, she listens intently. You can see by the earnest look on her face that she’s already developing ideas and strategies to accomplish your goals. By the end of your conversation, you’re surprised that someone can have such a clear understanding of your needs after just one meeting. This is the essence of Earle’s real estate service. She’s a straightforward businesswoman who doesn’t let up until her clients are satisfied.
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