Issue link: https://nest.uberflip.com/i/980618
Here are some things to consider if you're thinking of refinancing or purchasing a home. • Refinance sooner rather than later. Rates are forecast to increase through at least the end of the year, so there's no time like the present. If you have an adjustable-rate mortgage that's about to reset in a year or two, it might make sense to lock into a fixed-rate mortgage. • For purchases, watch rates and consider waiting if you can. However, home purchasers usually consider factors other than interest rates as it is less about timing the market and interest rates than about your specific life circumstances. But with experts forecasting continued slowing in many housing markets—particularly in the luxury market—home prices may fall. It is predicted that the housing market will shift back toward the advantage of buyers in 2018, therefore patience may pay off—if you are a buyer and can wait. • It's time to reconsider ARMs. More buyers are reconsidering adjustable-rate mortgages (ARM's) for 5/1 or 7/1, which often come with lower interest rates for a set period before increasing. Although there are definite draw backs to this line of reasoning as well, but these mortgages may be a good option if you plan to only be in your home for a limited period of time. One theory that many folks have is that as interest rates rise housing prices decline which may offset the costs.