With the recent increases in mortgage rates, the consumer can still get some good deals on a new or existing home. Although Mortgage rates have recently increased in the last couple of weeks into 4% range, homes prices are still expected to increase. In the short term, home process might even decrease slightly by 1 to 3 percent as buyer demand dips seasonally according to Amy Crew Cutts, a senior vice president and chief economist for Equifax. While existing and new home sales have risen in recent months, they remain below their pre-recession peaks, says Cutts. “Single-family housing starts are still about 60 percent below their pre-recession peak and existing-home sales are about 38 percent off their peak. Even with large percentage gains in housing measures, all major indices of housing market vitality point to a long recovery yet to come.” It is not too late to get a good home at a good price.
Source: “Real Estate Matters | Betting on the right time to buy as interest rates jump,” The Washington Post (July 2, 2013)