Chief Economist for the National Association of Relators had some good news for home buyers and homeowners as far as mortgages are concerned. There will be changes made to how FICO scores are calculated, which will make it easier to keep your score high. If you miss a payment but get caught back up, your score won't be as damaged as it would have been in the past.
The Federal Chairman also said lending guidelines for Fannie Mae and Freddie Mac will be loosened. This will make it easier for borrowers to qualify for mortgages. Additionally, he mentioned that the federal funds rate, which affects mortgage rates, may be raised as soon as the first or second quarter of next year. This means the rates we're seeing now are a pretty great deal.
The chairman also said rental rates are rising 3% to 4% nationally. Here in Hawaii, rentals are bit tight, so we think we'll see rates rise higher than the national average.
All in all, it looks like now is the time to buy. Since interest rates are the most important factor in being able to afford a home, you should lock in a rate now while they're favorable.
If you are interested in making your move soon, don't hesitate to reach out to us. Our Love it or Leave it Program keeps you protected - if you don't absolutely love the home you buy with us, we'll sell it for you for free! If you want to work with someone who will develop an organized approach to finding the perfect home, we're your team!
You may also call us at (808) 426-7211 for a FREE home buying or selling consultation to answer any of your real estate questions.