Posted by Adrienne Lally on Wednesday, December 14th, 2016 at 11:45am.
There was some of anxiety when it came to the Presidential Election, and many future homeowners were worried of losing their buying power because of a big increase. That wasn't the case, rates for home loans have only seen a minute increase. Rates are still historically low to today's standards, but given the current trend, we may see rates rise to 5% or more by the end of 2017. Keep in mind, the average interest rate in the year 2000 was over 8%, the average for 1990 was over 10%, and the average for 1980 was over 13%. Buying a home now or in 2017 ensures you will be taking advantage of this historically low interest rate.
It's safe to say that competition for homes is lower now versus in summer months when demand doubles. In summer months, it’s common for clients to be one of many offers on a home in the Oahu area. Having a prequalification letter from a well-known, local lender reassures sellers and helps you win properties over other homebuyers. Also, buying in a less competitive month such as December, January and February can make a big impact in winning a property AND finding sellers willing to negotiate.
Ready to Make the Move in 2017?
If you are considering a move in the new year, don’t hesitate to reach out to learn more about your options. We’d love to help you take advantage of these new government incentives and help you make the move in 2017.