According to a CNN Money report mortgage rates are once again rising. This is in response to an economy that is seemingly on the rebound. While interest rates and buying a home is still relatively cheap, it probably won't stay this way for long. The 30-year fixed interest rate went up this past week to 3.63% compared to 3.52% just the week before. If the economy stays on its current pattern, experts think that this rising mortgage interest rate trend will continue.
Where does this leave people like me who have been thinking of buying a home? I may have to delay my plans and continue renting rather than buying a home. It is a catch-22 situation. You hope for great economic times - but when things get better economically, interest rates go up. The best market for buying a new home is in a bad economy. That doesn't sound correct but it is true.
Financial experts do not think these rising interest rates will be enough to harm the rebounding housing industry. It seems that more financial institutions are willing to approve riskier borrowers these days. Isn't this how we got into a housing crisis before? Well, I am no housing expert but it seems to me that we should be careful of going in this direction again.
Renting an apartment is not completely without its merits. I have a nice, well-maintained apartment with cheap utilities. Some people may even think it is the ideal living situation. However, there are times when I long for my own backyard and a roomy house where I can go crazy and decorate until my heart is content.
As much as I may want to buy a home, now probably is not the right time with the economy rebounding and mortgage interest rates on the rise. I will just have to be happy living in my apartment with my limited space and boring, miniature-sized back yard. I will be on the lookout for the economy to worsen and interest rates to fall - so I can once again consider buying the home of my dreams.
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- Real Estate
- mortgage rates
- interest rates