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I am interested to hear lenders opinions on this site about mortgage rates and where they are going by fall of this year.

We have put off buying of our new home since property prices are higher during summer, but if the rates are going to increase by fall, we might as well take the hit on the property price rather then rates. Please provide feedback. by sheperdk236 from Altadena, California. Jul 29th 2015 Reply


Joseph Hendizadeh (josephh)
#310 ranked lender in California - 29 contributions

Generally property prices are listed higher during summer, however that does not mean you can not negotiate a reasonable price for a home. If rates do go up, it is likely for property prices to dip a little or not increase as much as they have.However, no one really knows whether or not when Rates will go up and if property prices will decrease or not. It ultimately depends on your financial situation and comfort level on whether or not you want to purchase a home.

Jul 29th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

No one has a crystal ball, but history is a good indicator of future markets.. Rates are low, so realistically, there's no place for them to go but up.. and that's exactly what's been happening in the past 2 months.. property values go up from year to year, and yes some area's seasonal pricing will push things up a bit in the summer..but your looking at it all wrong.. Lets say you purchase a $400K home today and you overpaid by $10K. In an average economy, your property increases in value say 3% per year, and your paying down your balance about 1% per year, but when you look at your properties value 10 years from now when you have $150K - $200K equity, the fact that you overpaid by $10K ls really insignificant.. But by waiting for the market to come down, if the interest rates increased, then you could potentially pay more than $10K in added interest in that time.. I say go find yourself a home, lock in your rate and don't look back. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jul 30th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,565 contributions

The Fed funds rate - the ONLY thing the FEDs control when they talk about raising or lowering rates, does NOT have a DIRECT relationship with long-term fixed rates. The FED funds rate has been about 0.25% for 7 or so years now. In that same period, long-term fixed rates have been as low as 3.50%, and as high as 5.50%. Even if the FED did increase their rate slightly, it would have a very minor effect in the short-term. I wouldn't worry about it... If you find the perfect house today... great. If you don't find that perfect house until the fall, I wouldn't anticipate that any changes in rates (for the short term) that would be anything to be concerned about. Other things that effect the market could more easily increase rates, or even negate a Fed funds rate change. I lend in MN, WI, and SD. Visit me at www.JoeMetzler.com

Jul 30th 2015
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