Why Current Interest Rates Shouldn’t Stop You From Buying
In a recent interview, finance guru Dave Ramsey claimed that despite rising interest rates, right now is the perfect time to buy a home. The average cost of a 15-year, fixed-rate mortgage in January 2022 was 2.43%. In July 2023, it had increased to 6.55%. So, what’s the deal, Dave? Although his statements may seem counterintuitive, his advice is well-founded. Here’s why.
According to Federal Reserve Chair Jerome Powell, not a single person in the Federal Open Market Committee wrote down a rate cut for this year. If the Federal Reserve proceeds with quarter-point increases, the new projection predicts two more hikes in interest rates before the end of 2023. In other words, interest rates will only continue to rise for the foreseeable future.
If you’ve been dreaming about living in the mountains and shreddin’ pow during your 5-9, Angel Fire is the perfect place to do just that. Whether you want to ski, fish, hike or bike, Angel Fire’s got you covered. You can also embrace a slower pace of life sipping your morning coffee on the deck, reading by the fire or admiring Wheeler Peak at sunset. If interest rates decrease in the future, you can always refinance, but you’ll want to snatch up your dream home soon before it’s gone.
The Mortgage Bankers Association (MBA) recently reported that mortgage applications for new homes increased by 26.1% between June 2022 and June 2023 in the MBA’s annual Banker Application Survey. This year, applications for new homes have also consistently increased for five consecutive months. The more people that apply to buy a home, the fewer listings there are available to you. Translation? The less likely you are to secure your ticket to the slopes. If you’re still wanting to wait, you may as well kiss that porch view of the Southern Rockies sunset goodbye.
Our team at RE/MAX Mountain Realty of Angel Fire can help you navigate the current state of interest rates and help you nail down your dream home. Don’t let a narrow view of financing stop you from living out your work-from-home, retirement or vacation fantasy in the Enchanted Circle. With the right support system and the help of a trusted RE/MAX professional right here in Angel Fire, you can make the most informed decisions just in time to enjoy ski season. Give us a call at (575) 216-5834 to get started, and we’ll be happy to partner with you.
