Real Estate Agents and industry professionals predict interest rates on mortgages will rise further over the next few years. How much higher could they go?

Lincoln, NE real estate agents noted that January ended with interest rates in the low 6’s, and we’ve seen different programs, mostly VA, even get into the 5’s. The feds have been manipulating the interest rates since the middle/end of 2022, in attempts to lower inflation, and curb increases in housing prices nationwide. 

The Fed's Rate Hike Cycle Has Begun

If you're looking to buy a house, now might be a good time to find a great real estate agent and start shopping. In fact, according to Zillow, the average U.S. home price rose by 4.2 percent year-over-year in June. That's the largest annual gain since January 2015.

Rising Interest Rates Will Affect Home Prices

Higher mortgage rates mean more money out of pocket when buying a home. And while rising interest rates aren't necessarily bad news for homeowners who bought at the peak of the housing market, they could make it harder for first-time buyers to enter the market.

Real Estate Agents Agree About Refinancing

If you're thinking about refinancing your mortgage, there's probably just as much concern here as there is about buying and selling right now. If you need to move and you're watching the rates- they're likely to keep going up for a while before they start to fall. A real estate agent can accurately price your home for the best refinancing options.

Refinancing Can Save You Money

All real estate agent will agree that a home equity loan allows you to borrow against the value of your house. You'll pay interest on the loan, but when you sell your house, you'll receive the difference between what you paid for the property and its current market value as well as any other outstanding debts. You should look into real estate financing with a competitive and trust-worthy institution.

Conclusion

Regardless where things currently stand, the current rates are still lower than pre-2007, and likely not going back to the 2-3% range which we were spoiled by for far too long by the fed. Now is a great time to find a real estate agent and buy your next or first home.

If you’re considering buying or selling while rates are trending higher—reach out to the real estate agents at Professional Realty Group and learn to best leverage the market no matter what the condition.