Consider contacting an experienced Chandler mortgage group like ours at Starboard Financial, if you’re thinking of buying a home in 2016. Interest rates are still great if you’re looking to secure a home loan but you should be aware of interest rate changes that may be coming.
Earlier this month, the Federal Reserve moderately raised interest rates. While the Federal Reserve says the increases are going to come slowly, they will still be coming. What this means is that in 2016, we will more than likely see similar rate increases like we just saw, with lending from Chandler mortgage companies potentially coming at a slightly higher cost.
Some of the predictions for 2016 include short-term rates increasing mid-summer, with long-term rates following closely behind. Currently, inflation is very low at 1.5 percent. The Federal Reserve’s goal for inflation is 2 percent annually. To meet the Federal Reserve’s goal, this means we should expect another approximate 1.5 percent increase in the next 12 months.
The Federal Reserve has said that its actions are dependent on data. This means that if the economy falters then we may see rate hikes stalled or postponed. If the economy strengthens, the rate hikes may come sooner and at higher percentages.
At the end of the day, finding your dream home depends on timing. Securing a loan before the interest rates increase is ideal but not always realistic. If you find your dream home and you’re ready to take the step to home ownership, call us. We will work with you to find the best loan rates possible for your individual circumstances. Then we’ll close the loan quickly.
When you’re ready to find your dream home, call us. We’ll walk you through what you can expect with interest rates in 2016 and determine the right loan for you. Let’s get your New Year journey started.