Mortgage rates may motivate prospective buyers to act

On Behalf of | May 8, 2018 | residential real estate

Florida residents who are thinking about buying a home may want to consider doing so relatively soon. Although home price appreciation is expected to slow in the next two years, mortgage rates are expected to hit 5.1 percent by the last quarter of 2019, according to a forecast by Freddie Mac. Home appreciation is forecast to go from roughly 7 percent annually today to about 4.3 percent annually by 2020.

However, those who are in the market for a home should know that they will likely face competition for any properties that they are interested in. Freddie Mac believes that home sales will grow to 6.44 million in 2019 despite the fact that interest rates are projected to rise. Millennials are projected to become the largest generation in America, and they are expected to start buying homes in larger numbers as they start families of their own.

In addition to interest rates, there are many other factors that buyers may need to consider before purchasing a house. While higher rates may result in higher mortgage payments, a person should also consider whether he or she can afford a down payment and other closing costs prior to making an offer. Those who are interested in buying a home may also want to consider how long before they will want to sell. Ideally, an individual will remain in a home for several years after purchasing the property.

Prior to a real estate closing, buyers could benefit from consulting with an attorney. In some cases, this may be mandatory. An attorney could help a client review a mortgage and purchase contract prior to the sale becomes official. If any problems arise before or after the close, an attorney could help resolve them in a favorable manner.