This past week the Federal Reserve hinted in a statement that interest rates would increase for the first
time in nine years sometime this June, which spurred many people to take action quickly. A raise in interest rates would cause mortgage rates to go up as a result, so there has been a huge increase in the amount of mortgage applications and refinancing deals recently as people try to lock in the current rates while they still can. People who were considering buying a home are also now prompted to bite the bullet and purchase, as former Philadelphia Fed economist Dean Croushore recently said to CNNMoney.com “People thinking of buying a house should act quickly to lock in today’s low rates.” With a hike in interest rates looming, now is the time to purchase or refinance in order to avoid paying more a few months down the line.
Miami in particular has seen an increase in developers refinancing on both already built properties and loans they had recently received on new projects in order to lock in the lower rates before the Fed bumps them up. The specific time of this increase is still a mystery, as the Fed recently told reporters that policymakers “have not decided on the timing of the initial increase”, but it will be happening at some point this year. Regardless of the exact date however, developers and property owners can be sure that this is the lowest the rates are going to be for a while, so now is the best time to buy or refinance.
If you have been considering purchasing a home, why not do so now in order to capitalize on the lower interest rates while there is still time. South Florida has plenty of amazing commercial and residential listing for sale, but they are in high demand and going fast. If you are interested in a South Florida property then don’t hesitate, contact a RE/MAX agent today!