Paul Salazar with Sierra Pacific Mortgage says people looking to buy or refinance will notice interest rates have already started to rise.
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"I think you're going to get those fence-sitters who have been waiting for rates to go down lower, which they're not. They are going to go up. The fed met last year and said they're expecting three rate increases throughout the year," Salazar said.
Salazar says FHA and VA 30-year loans are at about 3.5%, if your credit score is between 680 and 700.
He expects to see incremental increases in mortgage interest rates but no major swings.
"I think in the industry we're kind of thinking we'll be in the high 3's and low 4's and that will last throughout the year," Salazar said. "It's going to depend on inflation, the economy."
If you're in the market, it is important to pay down your debt and get pre-qualified.
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Salazar says even a small uptick in interest rates can have a significant impact on the homebuying process.
"When borrowers come in there's a fine line of them affording a house or not affording that house and with the higher interest rate that might put them out of that price range. That either means they'll have to come in with more money, or they're going to have to go to a lower sales price," he said.
Salazar recommends you get your taxes done as soon as possible so a loan officer can determine your home price range.
He adds refinance rates are at 4.25% for 30 years and 3% for a 15-year loan on average.