In the past few months, Lehigh Valley Mortgage Interest Rates have gone up from about 3.5% for an FHA mortgage to 4.25%, In addition, Conventional, USDA and VA mortgage rates have all gone up.
In December, the FED said the rates may go up 3 more times in the coming year. There is speculation rates may hit 5.0% by the end of the year.
This news is bad for a Lehigh Valley Home Buyer that is currently looking for a home or who plans on looking for a home in the future.
As the interest rates go up, the purchase price a buyer is qualified for will go down (or else their expected mortgage payment will go up).
Add into the mix that the number of Lehigh Valley Homes for Sale is very low. Based on numbers, the Home Inventory considers the market a "sellers" market.
These two conditions (low inventory/higher interest rates) makes it difficult for a home buyer. The buyers wish to purchase a home before rates go up but their selection of homes is limited.
All of a sudden a nice home comes on the market, priced correctly, and multiple offers are received within the first few days. A motivated home buyer may have to move fast and make a good offer or lose a home they want.
What can a Lehigh Valley Home Buyer do?
1) Don't wait to get a mortgage pre-approval until after you see a home you wish to purchase. Be a good qualified home buyer before you look at the home. Some mortgage companies can pre-approve you the same day while others may take up to a week. The delay to get your pre-approval may cause you to lose a home you really want.
2) Consult with a real estate agent to get notified the same day that a home meeting your criteria gets listed.
3) If a home buyer sees a home that is "the" home. Don't wait. Schedule a showing.
For all of your Lehigh Valley Real Estate information, visit www.lehighvalleyhomesonline.com.