Hello Everyone and Happy July!
Interest rates are continuing to modulate as we move closer to the next Fed meeting at the end of the month. The consensus is rates will be raised again by another 75 basis points. Mortgage rates have already begun to adjust in preparation. Rates are expected to go up another 2 times later this year if inflation does not ease. Its possible official recession will be announced in the next few months. That’s the tough news.
So what’s the next move? Buyers should consider other options from 30 year fixed such as a 10/1 ARM and then be prepared to refinance when the markets cool down. You must keep credit and income in line and absorb additional closing costs in the future to get the mortgage where you want it ultimately for the long term.
Rates are likely not coming back into the 3s any time soon, so waiting for that to happen while build costs increase is not a smart strategy. Good financing is available. Pairing with a rate consultant who is experienced is key. Now is still a good time to build. Secure rates now with a one-time close construction loan and secure your build costs now rather than later! Make smart, well thought out decisions for positive financial outcomes!