Throughout the housing crisis of 2009, lower borrowing rates for those seeking a mortgage were some of the prime motivators for the housing recovery. While the housing market in Scottsdale has seen a positive trend in recovery, the trade-off is the fact that mortgage rates have risen and after announcements made by Ben Bernanke on June 19, 2013, are seemingly set to rise again.
For the fifth week, ending June 6th, the rate for a 30 year fixed rate mortgage had gained, being at 3.91 percent. Freddie Mac, reported that this has been the highest level in close to a years time. The current rate is 18% higher than the low seen in November 2012. Roughly translated, this is an extra 30 dollars each month for every $100,000 borrowed. Seeing the rate increase and its demonstration as to the effect it can have on the budget for the average family is clear. Mortgages will become more expensive and the amount of extra money available to families will be going towards their mortgage.
In the Scottsdale housing market, while there has been an increase in buying and selling alike, there has also been a hesitancy seen where some are on the fence regarding buying or selling, now or later? Whatever the growth in the mortgage rates, different parts of the country will see more effect than others. In the Scottsdale market the fact that home prices are higher in comparison to the Midwest, those home buyers in Scottsdale may see more of an effect.
Prices are continuing to rise, and while still affordable, with higher mortgage rates buyers will begin to see less home for their money. With these newest expectations and mortgage increases, the time could not be better to get off the fence and find your perfect home and buy it, or list the one you have been thinking about selling.