Interest rates rose above 5% recently and are predicted to go higher, perhaps much higher, by some sources.  Even with the recent rise, interest rates are below the peak level in the summer of 2009.  Since interest rates have a significant impact on the long-term cost of homes, locking in a low interest rate can help home buyers signifcantly.  Conversely, higher rates, increase costs and can damage a housing recovery.

While rates are still near historic lows, now may be a great time to buy a house or refinance your existing house.  As we have previously noted, getting a lower interest rate can save you much more in the long run, than getting a few thousand dollars off the face price of a house.  If you had to choose between waiting for the chance that the price of the house you want might fall $5,000 more or locking in a 1% lower interest rate, you should go for locking in the lower interest rate.

Let us know if we can help you find the house you want in the Charleston, SC area.

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