Scary october
How do you feel about decorating for Halloween? I’ve read that more than 70% of households decorate for fall. To me, there is a bit of a difference between a pumpkin on the porch and a 12-foot skeleton in the front yard, but I suppose both get dumped into the same data study. Personally, I don’t like scary things: movies, books, stories, or decor. You won’t find ghosts and ghouls in my front yard.
The scariest thing I have seen this October has been the interest rate! Yes, Mortgage News Daily did report an average rate of 8% at one point this month. No one is excited about that! I have been a homeowner for years and years – over 30 – and never have I ever had a mortgage with an interest rate over 8%.
I have definitely heard of higher rates. Realtors who have been in the business for 40 years will talk about rates in the high teens, even 20%. Now that sounds really scary! In conjunction with those rates, let’s remember that housing prices were extremely different back then as well.
So what should buyers do about this? What can they do? I think that depends on their circumstances. Do they need to buy? Are they in an apartment paying rent? Are they bursting the seems of their little starter house now that they have added 6 children to the mix?
If you need to buy a house, I would suggest you start searching today. Will rates go down later? Maybe. If they do, you can refinance. (I know a lender who will allow new home buyers to refinance for free after making 6 payments.) What if rates don’t go down?
I’ve heard another lender talk about people who are putting off buying, thinking that they will look again in the spring, hoping rates will go down. Will they? Maybe. Can you imagine the competition in the spring market if rates do go down? Personally, I’d prefer to buy in the fall market with less competition and plan to refinance if rates are better in the spring.
No one really knows what the future holds. There are no guarantees regarding the rise or the fall of interest rates, and I cannot fix that. But, maybe I should go a little crazy and decorate for Halloween this year. You’ll know which house is mine – it will have a large 8% sign in the front yard.