HomeVestors Knows That The Current Mortgage Interest Rates Are Attractive To Investors


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Purchase an investment property while the mortgage interest rates are still attractive to investors. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that the current mortgage interest rates are quite low and are expected to climb over the coming months.  Investors who have found the property they are interested in purchasing should secure the deal now.

Those who want to take advantage of the current mortgage interest rates need to act quickly in order to do so.  The mortgage interest rates have increased to 4.27%, up from 4.09% a week ago.  If this is any indication of what is to come, expect that the rates will continue to increase throughout the year.  Investors who can secure a property in the next coming weeks would be advised to do so, if they want to obtain lender financing.

As the United States Fed continues to reduce their bond-buying program, the mortgage interest rate will continue to increase.  The Fed has suppressed mortgage interest rates for the last couple of years, but this era is coming to a close.  Those investors who purchase a mortgage at the end of 2014 are going to be looking at rates higher than 5%.  If rates push up even higher over the next couple of years, expect that the market will switch in favor of buyers.  Investors should be able to take advantage of the market at that time, but will need to pay significantly more to leverage capital.

Since rental property continues to increase in popularity, consider purchasing one in a prime area of the country soon.  Those who do so will be able to take advantage of the current mortgage interest rates and capitalize on an increase in rental rates.  As more people seek rental property, expect that the value of these properties will soar, giving an investor the motivation to purchase one before the end of 2014.

It is likely that the next couple of years won’t be as attractive to investors, as securing a property under a mortgage will be unaffordable.  As fewer buyers can afford housing, expect that property values will drop.  Investors who have the ability to pay for their investments with cash should consider doing so in the next couple of years.  These investors will have the power, as sellers will be desperate to sell their property to anyone who comes along.

Investors who are able to secure property soon can take advantage of the current mortgage interest rates.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

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