Interest rates hovered around 4% for the majority of 2017, which gave many buyers relief from rising home prices and helped with affordability. In the first quarter of 2018, rates have increased from 3.95% up to 4.45% and experts predict that rates will increase even more by the end of the year.
The rate you secure greatly impacts your monthly mortgage payment and the amount you will ultimately pay for your home. Don’t let the prediction that rates will increase stop you from purchasing your dream home this year.
Let’s take a look at a historical view of interest rates over the last 45 years.
Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago. My parents took a risk 45 years ago and moved to Traverse City. They took on a ridiculous interest rate to make their dreams come true and bought a business at over 17% with perfect credit. My childhood in Traverse City… Priceless.
My personal journey in home ownership reflects these stats as well. I am so grateful for locking in at the rate I did on my current home, 3.75% our first home in 1996, 7.75%! What a difference. Wherever you are in your home ownership or business journey check the rates.
Commercial buying can be a little scary your first time. Learning the rules of commercial buying can be enhanced by using a lender that works with first-time buyers. Shop the market, interview the banker, and establish a relationship with a bank.
My friend, and commercial lender, Michael Caruso (for more information on commercial rates and programs connect with him on LinkedIn by clicking on his name, yes shameless plug, but, he has given me a wealth of information on this topic and always answers my questions, so… there you go) with mBank, updates me on commercial rate constantly and reminds me of all of the options and programs available for commercial buyers. I refer to him for SBA questions. Speaking of which, another thought is the Small Business Administration. They are wealth of information. Through the SBA is SCORE, a free service that can guide you the creation of your business. Take the leap people, now is a great time!