Buying a Home in Miami? Interest Rates Creep Up

Home in MiamiBuying a Home in Miami? Interest Rates Creep Up. A recent survey and a rate increase could mean more competition for homes. The recent indication is that first-time home buyers are getting tired of sitting on the sidelines.

According to a recent online poll by the National Apartment Association, 17 percent of renters plan to jump to home ownership in the next year; 41 percent of the 2,041 respondents planned to be homeowners within two years. Only 31 percent planned to still be paying rent five years from now.

Another factor that could very soon contribute to an increase in home buying could be rising mortgage costs. Fixed-rate mortgage rates rose to 6.32 percent, the highest it has been since October. After months of aggressively dropping interest rates, many lenders worry that the Fed will be forced to back up rates.

As interest rates rise, so do mortgage rates. Interest rates chart showing increaseAccording to a press release on, Frank Nothaft, Freddie Mac vice president and chief economist, said that “Mortgage rates jumped this week after a number of Federal Reserve officials, most notably Chairman [Ben] Bernanke and Vice Chair [Donald] Kohn, expressed concern over a threat of inflation.” We may very well be seeing the beginning of the end of the super-low mortgage, and potential buyers may realize that with rising rates, now may be the time to jump in. Nothaft added, “Moreover, pending home sales for April unexpectedly rose by 6.3%, and mortgage applications for home purchases … were also up last week.”

If you’d like new blog updates once available, you can be notified by email each time a new posting occurs. Contact me here or toll-free at #1.888.38.DREAM

About Ashton Coleman

Ashton is a tech & social media savvy professional who understands the industry providing white-glove service with a wealth of experience, an impeccable reputation, and a keen ability to efficiently handle all facets of real estate. Ashton’s territory has grown significantly since 2002, marketing & selling extraordinary South Florida coastal real estate from Miami Beach to Lighthouse Point. A Certified Luxury Homes Marketing Specialist (Million Dollar Guild), with a multitude of other residential certifications, Ashton provides both exceptional service and unique selling techniques. His success is attributed to an unparalleled work ethic with years of experience including top-tier professional services where the ‘art of the deal’ is mastered in contract negotiations, deal-making intricacies and the end, results-driven real estate.

folder_openBuyers of South Florida, F.A.Q.label, ,

One thought on “Buying a Home in Miami? Interest Rates Creep Up