It looks as though spring is finally coming to the Hagerman Valley. It’s been a long hard winter in Idaho’s banana belt. We have endured record-breaking snowfall, rain, and flooding. Hopefully the brief thaw we had several weeks ago will alleviate more severe flooding as the temperatures continue to rise.
Temperature isn’t the only thing on the rise. According to a story on the Washington Post on March 9, 2017 financial markets anticipate the Fed will raise the benchmark rate when they meet on March 14-15th. In anticipation of such an announcement, mortgage rates have reached a high of 4.21% compared with 4.1% last week, and 3.68% at this time last year. The article notes that mortgage rates aren’t actually tied to treasury rates, they appear to be finally coming in line with those after several years of doing their own thing. The economy appears to be strengthening and with that strength comes the need to increase rates in order to curb inflation. Unless something unforeseen, it is highly likely that the benchmark rate and mortgage rates will continue to climb.
If you have been considering buying a home as a first time home buyer, or you have been thinking about moving into a different home, you may want to act sooner than later. Interest rates play a key role in how much home you can afford.
In looking at Twin Falls County for January 1, 2016 – December 31, 2016 the average price for a home was $174,170 per IMLS. The mortgage and interest payment on a home of that value at last years rate of 3.68% would have been $799.71, at today’s rate of 4.21% your payment would now be $852.74. In order to maintain that same payment, as one year ago, would have to purchase a home valued at $163,339.12, you just lost $10,830 in buying power.
So, if you have any interest in buying, now is a good time while you can get a better bang for your buck.
It’s more than a house, it’s YOUR home!!™