Now Is The Time to Lock in Your Mortgage Rates

The summer months have bought a slowdown in the home buying market following what appeared to be brisk sales during the early spring. The rise in rates can be blamed for the apparent slow down that seems to have been created by the hinting of Federal Reserve members about a possible tapering of US Treasury securities and agency mortgage-backed securities. It was these asset purchases that have kept rates to historical lows the last few years. The mere hinting by the Fed of this “tapering” off appears to have been at the root of the slower market over the summer months.

The Fed did not believe that a recovery could happen without the low rates. However, when members began to hint about the tapering off of asset purchases back in May , the rates started to climb from the historic lows that have been enjoyed by many home buyers. This rise put the brakes on a housing recovery that was seemingly in full swing. During the summer months, mortgage applications and sales have lowered. Even builders have seen a slow down within their showrooms. Although many continue to tout about demand and affordability, many have seen that summer has brought fewer sales. With confidence among builders at an all time high, the slowdown in recovery has brought some concern within the housing market. Many have seen buyers hesitant due to the sharp increase in rates. Sales have also been hampered not only by the rise in rates but also, low inventory, anemic construction, and lackluster job and wage growth.

Along with slower sales, the increase in rates have dramatically lowered the amount of individuals looking to refinance. The slowdown has been felt all across the board. Many understand that a “taping off” by the Fed is bound to happen, many believe it should be done now rather than later. There may  never be a right time for the Fed to taper off, but experts understand that the market is prepared and now is the time.

For those home buyers on the fence of whether or not now is the time to buy a home, they must make the move now in order to secure the current rates. If the Fed decides to make its move, the perfect time for home buyers is soon rather than later.

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