Posts Tagged ‘mortgage interest rate increases’

HomeVestors Knows That Mortgage Interest Rate Increases Are On The Horizon

Monday, December 16th, 2013

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Investors who have been thinking about obtaining a mortgage to pay for their investment need to act fast if they wish to take advantage of the current interest rates. 

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 good new regarding the United States employment numbers and the increase in GDP is bound to convince the Fed to rethink their stimulus program.  If this program is tapered in the near future, expect that mortgage interest rate increases will force investors to consider other lending options.

Investors who are holding off on purchasing a property may have to deal with mortgage interest rate increases when they finally find the real estate they are looking for.  While the economy appears to be on the road to continued recovery, the Fed can finally pull back their stimulus program that has been keeping the United States afloat.  While this is great news for the United States economy as a whole, it is also bad news for investors who wish to secure lender financing at an interest rate below 5%.

Investors who are looking at multiple different properties and still haven’t made up their mind on which one they want to choose should continue to perform their due diligence, but keep in mind that time is of the essence.  These investors should continue to remain up to date on the news regarding the Fed’s QE program and act accordingly.  Stay tune to the upcoming press conference on December 18, 2013, where Bernanke is bound to reveal his intention regarding whether or not tapering will occur in the near future.

Those who feel that mortgage interest rate increases are on the horizon, based on the improving economy should do what they can to secure a mortgage before this December 18th meeting, if at all possible.  If Bernanke reveals that the Fed intends to reduce the stimulus program, expect that the market will take a hit and that fewer people will be signing up for lender financing in the near future.

When mortgage interest rate increases actually occur, the only investors who will be able to capitalize on them are the ones who are paying exclusively with cash.  These investors will be able to take advantage of reduced competition on the housing market.  As fewer buyers scout the market for their next house, expect that property values will dip and give cash investors an advantage over the market.

Investors who are able to secure property in the next couple of weeks won’t have to concern themselves with mortgage interest rate increases.

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