If real estate is brought up in any conversation, the direction usually turns to the rising interest rates. News of interest rates rising has a lot of potential home buyers feeling discouraged because they feel like they missed the time to buy and home ownership is now out of reach, but that is not true. Ralph DiBugnara, industry expert and President of Home Qualified wants to share his interest rate predictions to help ease the minds and motivate potential home buyers to continue their home search.
Ralph believes we will see interest rates continue to rise to mid 5’s for a 30 Year fixed based on what the federal reserve has stated regarding their policy and how the economy is trending currently.
The biggest factors are if the Fed will continue to raise the borrowing rate and if unemployment will continue to decline. Consumer spending is also way up which could further influence an increase in interest rates. When spending is freer there is much more confidence to continue to raise.
Ralph still believes now is as good as a time as ever to buy real estate. We currently are in a higher average rate market then we have been in a long time, but it is still cheaper to borrow money now then in almost any other historical period outside of the last ten years. Prices of homes are stabilizing, and Ralph would advise getting into the buying game as a priority if you are thinking of it.