If you are thinking about taking out a mortgage to buy a second home or a primary residence in Anchorage, Alaska, you are likely watching how interest rates move. According to a research report by Zillow.com, rising interest rates cost homebuyers a lot of money. Higher financing costs in the future will affect buyers and sellers in Anchorage where home prices continue to increase. The Zillow report examined how a percent increase in interest rates would affect the monthly mortgage payments for an average home in 35 metropolitan areas. A 1 percent increase would cost prospective buyers throughout the country anywhere from $65 to as high as $700 a month in some markets. Experts say increasing mortgage rates means homebuyers would have to tighten their budgets and cut discretionary spending in order to afford a mortgage.
• Looking at today
A report by Bankrate.com shows mortgage rates are currently near the bottom or at record low levels. Recent figures based on a national survey of lenders revealed the 30-year fixed rate is hovering below 4 percent, at times dipping as low as 3.8 percent. In the past 12 years, the average 30-year fixe as been about 4.2 percent. Meanwhile, people currently choosing a 15-year fixed-rate mortgage can achieve a rate of about 3.13 percent, officials say. Luxury home buyers in Anchorage Alaska who need a jumbo loan will find rates at around 4 percent as well.
• Pointing to a healthy market
Experts say home prices continue to go up at a steady pace. Stable price appreciation indicates a healthy real estate market in Anchorage, Alaska. Some homebuyers feel more confident about the idea of buying a home with low-interest rates and realizing a slow but steady appreciation as home values rise. Low interest rates, to some extent, offset the higher home prices for now.
• Planning for the future
Potential homebuyers who continue to wait on the fence or rent instead of buy in Anchorage, may need to save up more money for a down payment to get the home they desire. According to Bankrate.com, the Fed could raise the prime rate in the middle of 2015 or by the end of the year. First-time homebuyers in Anchorage can lock in a low rate now, experts say.
At Wolf Real Estate, we can help you on your house hunt in Anchorage, Alaska. For more information about interest rates and how they affect home buyers in Alaska, please contact us 907-248-9653 or visit us online at http://www.anchoragehomesearch.com.