Ask Terry Questions Home loan interest rate

Home loan interest rate

By Terry Savage on September 05, 2023 | Housing / Real Estate

What is the current interest rate for a home loan. My grandson is 31 and is looking to buy his first home, no wife or kids. He has a very good credit rating, good job. What is the best rate he could get. Also, will interest rates be going up within the next year?

Terry Says

Whether interest rates will go up in the next year is anyone’s guess. My suspicion is that rates could rise, and then dip if we have a severe recession.
Currently, the rate on a 30-year fixed rate mortgage is about 7.3% for someone with good credit — so not exactly the best time to buy. If the purchase is not urgent, I suggest he continue to accumulate cash for a larger down payment (in a safe money market account) and wait for rates to drop — and that may take more than a year.

But if he finds a bargain, or the “perfect house” right now, it’s important to remember that if/when rates drop he can always refinance. But he can use the present housing sales slowdown (occurring because of high rates) to negotiate for a better price on the house, creating that bargain, if the seller is desperate.



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