Toward the end of last year, the Federal Reserve announced that borrowers could expect a series of rate hikes throughout the year in an effort to fight inflation and prevent the economy from expanding at an unsustainable rate. Although interest rates are key considerations for most borrowers, there are actually a number of advantages to higher interest rates. In this blog we will look at uncovering the hidden advantages of higher interest rates.
Mortgage rates have peaked and dipped from a high of eighteen percent in the 1980’s to today’s relatively low, but increasing rates. However, despite seeing interest rates at historic lows recently, today’s mortgage rates are still lower than average. If you can afford a property, it’s still a good time to buy.
Qualified borrowers are still getting very reasonable mortgage rates, while rising rates are eliminating the competition of marginal buyers who may not be able to afford higher payments. In effect this reduces the competition of other offers or contingencies for desirable opportunities and can lower costs. The lower costs may in fact offset the slightly higher rates. Approachable mortgage rates, and less competition mean better chances of finding the right real estate purchase. In addition, higher rates mean mortgages are closing faster than they have in many months.
On a broader note, the good news is that positive economic trends tend to support a strong housing market, and when economic conditions are improving, mortgage rates have a tendency to rise. Over all, higher mortgage rates are not only good for the health of the housing market, but can offer important edges for buyers too.
With 17 years of experience in the home lending business, 1 Stop Lending’s professionalism, expertise and attention to detail is what separates us from the competition. We are contracted with some of the lowest priced lenders in the nation and provide all loan types, including conventional, jumbo, VA, FHA and USDA for purchases or refinances.
In addition to discounted mortgage rates, 1 Stop Lending offers unsurpassed customer service. Not only do we work fast, but our systems are completely paperless. 1 Stop Lending’s leading-edge technology keeps your loan moving swiftly and our advanced communication systems keep you informed throughout the process.
If you are interested in learning more about obtaining your next mortgage, we are just one phone call, text or email away from answering any questions you have. Please visit https://1stoplending.net for more information.