2015 has been named the “Year of Housing Opportunity,” the “Year of the First-time Homebuyer” and for great reasons! Aside from rising home values and prices and a desire to upgrade, Alaskan homebuyers are motivated to take advantage of the low mortgage rates!
Homebuyers in Fairbanks, AK have almost grown used to the fact that mortgage rates are still in this range. If you watch the these rates rise and fall each week, you’ll notice that they have been hovering around the 3 percent range for several months. We even started off the year at a 20-month interest rate record low! When the 30-year-fixed-rate mortgage reached an average of 3.73 percent, it was the lowest level since May of 2013.
But for those thinking of selling their Fairbanks home and moving into their next dream home or buying their very first home in Alaska, it’s important to know where mortgage rates are headed this year. Our advice? Don’t wait! Many real estate economists have predicted the 30-year-fixed rate mortgage will approach the higher 4 percent range or even 5 percent by the end of 2015.
Waiting to sell your home and purchase a new property in the Fairbanks AK area will ultimately cost you more money than if you made a move right now. Just one year could add as much as $80 more to your mortgage loan of $100,000. If you purchased a home in North Pole, Fort Wainwright, Salcha, or Fairbanks with a $200,000 mortgage, the payment would be an extra $160 and $240 for a $300,000 mortgage.
But even with these modest interest rate hikes, Alaskan homebuyers have little to worry about. Back when Freddie Mac first began logging mortgage rates, you could have seen as much as 8.5 percent tacked on to your monthly payment! In the years leading up to the recession, 6 percent was considered an average rate.
Both mortgage rates and the number of homebuyers continuing to enter the real estate market this spring should give Fairbanks AK residents a boost in motivation! You won’t want to wait to purchase a home after the rates begin to rise— Madden Real Estate can work with you on a speedy sale to help you relax by summer!
Contact us today for a list of available homes in Alaska that will meet your criteria!