Here’s the thing about mortgage rates, that, as a real estate lawyer in Florida, people are always inquiring about:
When are mortgage rates expected to change and how will this affect the housing market?
It seems that when the real estate and financial markets have provided us with lower mortgage rates, we’re constantly questioning how long this will last and when they’ll increase. And of course, when rates are high, we’re asking the same questions – only hoping for rates to go down.
And it’s a smart question to ask, considering most first-time home buyers will require a mortgage, and mortgage approval, to make their home purchase dreams come true.
In the final quarter of 2016, for the eleventh straight quarter, a greater number of mortgage lenders reduced their loan approval standards than those which increased them, according to Mortgage Reports. This is great news for those looking to buy a home in Florida, or anywhere else in the country – but of course, that nagging question of “how long will this last?” creeps up again.
Well, the breaking news that hit the internet airwaves this week answered that question for us, at least when it comes to interest rates.
At Grimaldi Law Firm, a leader in real estate law, estate planning law, and business law, we give you the news that will keep best informed on your search for a new home.
As reported in the Economy section in the New York Times this week, the Federal Reserve just raised interest rates for the third time since the financial crisis.
The second increase in two months, was described by the Fed’s chairwoman, Janet Yellen, as a result of the fact that “the Fed did not share the optimism of stock market investors and some business executives that economic growth is gaining speed.”
Additionally, she added that the longer-term outlook is less clear than it is for the next two years where optimism remains the overall consensus.
So, what does this mean for the real estate market in Florida?
According to Forbes, this change will be good for business! With lower rates in the past, lenders were not willing to take the gamble on certain people or businesses because the spread (the difference between what they pay for capital and what they charge borrowers)
was too thin. Now, lenders are more likely to actually lend, which means more money for the economy.
It also means, that no matter whether you’re thinking of purchasing, selling, or asking questions related to real estate in Florida, Grimaldi Law Firm is here to keep you informed, up to date, and in great hands.
With an economy that is constantly in flux, and with so much to know regarding the ins and outs of real estate, we want to help make sure you understand every little thing. Consider Grimaldi Law Firm, in Hollywood, Florida your partner in real estate.
At Grimaldi Law Firm, your future is our present.
About the Author: Melinda Grimaldi is an attorney in Hollywood, Florida, whose practice is concentrated in the areas of commercial and residential real estate and estate planning law.
She can be reached at (954) 491-8707
Special Note: The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced real estate attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.