Mortgage interest rates are climbing rapidly. The recent spike, in the last two months, has added a full point to the interest rates buyers will pay on a new house. Last month, I talked about the low interest rates (then 3.5%), available to Alpharetta home buyers, and suggested that anyone who wanted to buy should buy right away. Today, that rate is no longer available, but my advice is still the same, and this is why:
- From an historical perspectives, don't worry about the fact that you didn't get your 30-year fixed at 3.5%.
- Realize that today's rate of 4.5% is still a fantastic rate and waiting will only leave you with higher rate options. Looking forward, rather than looking back, indicates that now is the time to buy.
- Although 3.93% was available on June 20th as reported by Freddie Mac, today you won't get anything under 4.5%.
- Don't put off your home shopping in the hopes that the rates will return to below 4%. That's a bad choice.
- If you want a new house, you should buy one now. Today's rates are still near those historic lows.
- Consider: In June of 1983, interest rates were 12.87%; in 1993 they were 7.42; in 2003 they were 5.23% and today it's 4.5%. (See this chart to compare historic mortgage interest rates.)