There may be no better time than now to buy a home along the Jersey Shore. Current mortgage interest rates are still at historically low levels. For some time now home buyers have been reveling in mortgage interest rates less than 4 percent. However, analysts are expecting all that to change in the weeks to come as the Federal Reserve has increased the central bank’s benchmark rate, which will result in an increase in loan rates.
Since December 2008, the Federal Reserve has kept its benchmark interest rate at 0-0.25 percent. With the anticipated rate hike looming this means more expensive monthly mortgage payments for buyers.
If you were planning on waiting until 2016 to buy your new Jersey Shore home, consider purchasing before the years end.
Now that the Federal Reserve has increased the benchmark rate, the mortgage interest rates buyers will be faced with will still be low when compared to historical standards. The increase in rates may impact how much a borrower will qualify for. For instance, a half of percentage point increase can mean a 6 percent increase in monthly payment amounts on a loan average of $231,000.
To learn more about buying a home along the Jersey Shore and how the increase in rates may impact you contact us today for a free consultation. Let the professionals at the Ferzoco Group help you sell or buy a home along the Jersey Shore. Our job is to make your tomorrow better than today.