Cheap mortgages fading

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Interest rates on 30-year fixed-rate mortgages recently increased about 1 percent. When rates begin to rise, home sale activity often picks up. This has happened in many areas of the country as buyers hurry to take advantage of cheap mortgage money before it disappears. As rates rise, affordability drops. This means that buyers who are only marginally qualified for fixed-rate financing have to consider less expensive mortgage products in order to buy the home they want. Otherwise, they have to buy a less expensive home, or not buy at all. One problem with buying a less expensive home is it might not suit your long-term needs. It may be smaller than what you ideally need, or located in a less desirable neighborhood, perhaps with an inferior school district. You might feel pressure to move again sooner than you would if you bought the more expensive home. But buying and selling homes frequently is expensive and adds to your overall housing expense. HOUSE HUNTING TIP: When rates were...