Our Real Estate Outlook
Rising food and energy prices are a warning that inflation may go up, many commentators believe. Expectations of increasing consumer costs then could cause interest rates to rise, reports The Washington Post. And higher rates would lead to larger mortgage payments for future homeowners.
Consumers soon will find fees added to the cost of getting a loan, as well. “The mortgage market is facing pressures from new laws and regulations,” reports The Wall Street Journal. Government-sponsored Fannie Mae, Freddie Mac, and FHA all are increasing their fees for some borrowers, the Journal adds.
It may be in your interest to move ahead with an essential home purchase sooner rather than later. A possibility of rising rates and higher fees could add to your costs in the future.
Although that sounds discouraging, it’s important to note that mortgage rates remain near half-century low points. Rising inflation also can be expected to increase home values over time. Homeowners will gain as a result.
Of course, having a great place to live is the main reason to purchase a house. Every day you’ll appreciate the lifestyle freedom and security your home provides.