Why You Should Buy Your NJ Home Before Interest Rates Rise

b8f9c15be7dcdc504daa_calculator_arrow_house_interest_rates.jpg
Read on to learn why interest rates are rising!
b8f9c15be7dcdc504daa_calculator_arrow_house_interest_rates.jpg

Interest rates for a 30-year fixed rate mortgage climbed from 3.95% in the first week of January up to 4.61% last week, marking a 7-year high according to Freddie Mac. Many factors fueled the current pace of acceleration.  Sam Khater, Freddie Mac’s Chief Economist, opines:

“Healthy consumer spending and higher commodity prices spooked bond markets and led to higher mortgage rates over the past week.  Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.”

But what do gas prices have to do with interest rates?

Sign Up for E-News

Investopedia explains the relationship like this:

“The price of oil and inflation are often seen as being connected in a cause-and-effect relationship. As oil prices move up or down, inflation follows in the same direction.”

You’ve probably noticed that filling your gas tank became substantially more expensive in recent months. The average national gas price climbed nearly $0.50 from the beginning of the year, leading to the highest price for Memorial Day weekend since 2014.

As rates go up, your home purchasing power goes down, but don’t worry; rates remain well below the averages we’ve seen over the last four decades.

“Freddie Mac said this year’s higher rates have not yet caused much of a ripple in the strong demand levels for buying a home seen in most markets, but inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.”

Experts believe rates will continue to climb, meaning buying your New Jersey home sooner rather than later will lock in a lower rate than waiting. Even a small increase in interest rates creates a big impact on your monthly housing cost.

Bottom Line

Planning on buying a home this year? Keep an eye on gas prices the next time you’re at the pump. If you start to feel a big jump in price, know that rates are probably on their way up, too.  Ready to buy your new home now? Contact Team Nest Builder’s Lynn Garafola at 973-222-3777 to start the process today! Liked this article? Check out our blog for loads of helpful information on real estate, home improvement and community events!

 

Source: KeepingCurrentMatters.com

Team Nest Builder is a full-service home finding and home selling team servicing the northern New Jersey Skylands Region. Our state licensed sales associates have well over 50 years combined experience and millions of dollars in closed business to draw on when servicing your personal needs.

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Piscataway

Edison Public Library Donation Drive for Edison Animal Shelter

June 6, 2018

The Edison Township Free Public Library is partnering with the Edison Animal Shelter to do a donation drive for the Edison Animal Shelter. There is a checklist of all items that are being accepted at the animal shelter. These checklists can be found above and the donation bins will be available at all three branches. We will be collecting items until the end of June. For more ...

9-story apartment complex with roof-top pool formally opens in New Brunswick

June 20, 2018

NEW BRUNSWICK, NJ - The city's latest luxury apartment building recently held a formal opening for the complex on Neilson Street that has a roof-top pool with cabanas and grills, a dog park and pet spa.

The Quincy, a 393-unit, nine story building opened last month, offering studio and one- and two-bedroom apartment ranging in size from 503 to 1,236 square feet.

Mayor James Cahill said ...

Obituaries

Toms River – Mary Stella Whiteman, 97, passed away peacefully Saturday May 19, 2018 in Rose ...
Read more
Piscataway – Reinhard Rudolf Kiefer, 85, died Sunday March 11, 2018 at home. Born in ...
Read more

The ESCNJ Offers Innovative Software To Strengthen School Transportation

June 20, 2018

New software promising greater speed and efficiency for school transportation departments is now available through the Educational Services Commission of New Jersey (ESCNJ).

The software is the result of a two year collaboration between the Princeton based Artha Systems, an international supplier of business management software, and the ESCNJ.

“The software is unlike anything on the ...

Registration Open For Fourth Annual Softball & Baseball Summer Camp

SPOTSWOOD, NJ - Registration is open for the Spotswood Youth Baseball and Softball League's fourth annual summer camp. The camp is for ages five through 15 and will be held every Wednesday in August from 6 p.m. until 8 p.m. beginning August 1. In the event of rain on either August 1, August 8, August 15, August 22 or August 29, a makeup camp will be held on the following Friday.

Camp will ...

Rutgers-Camden students who saved man from fire honored by City of Camden

Camden, NJ—The Rutgers-Camden students who saved an elderly man from a March fire at his Cooper Street home were honored by the City of Camden Tuesday night.

Mayor Frank Moran awarded proclamations to Corey Zytko, Jonathan Perez-Gaytan, Matteo Resanovic, Vanessa Solis Palma, Sehwan Park and Tammy Meneses on Tuesday, June 12.

On the night of March 23, the students were hanging out in ...

Upcoming Events

Carousel_image_8f0a915f696bb2ae1366_community_shred

Sat, June 23, 9:00 AM

Quibbletown Park, Piscataway

Piscataway Township Paper Shredding Event

Government Green

Wed, June 27, 7:00 PM

Piscataway Public Library, Piscataway

Empowerment for the Job Search: Applications & ...

Business & Finance

Thu, July 5, 7:00 PM

Piscataway Public Library, Piscataway

Trivia Night at the Library!

Arts & Entertainment

Westfield High School Sophomore Dies; Counselors on Hand at School

June 19, 2018

WESTFIELD, NJ — Carthoris “Carter” Uziel, a sophomore at Westfield High School, died Sunday night, according to Westfield Public Schools and a letter sent to parents by Principal Dr. Derrick Nelson.

“Words cannot convey the grief we feel in the Westfield Public Schools community over the death of Carthoris ‘Carter’ Uziel, a sophomore at Westfield High ...

A Date with Destiny

Leslie. . . it would be the bomb . . .  if we could go to prom . . . together.

 

For the record, Leslie is my wife, and this is my openly public attempt at a promposal.  

 

My twin high school seniors taught me about promposals, those cute, showy, and sometimes over-the-top ways of asking someone special to prom.  This year they have been on both the ...