So much is changing with thehousing market, and understandably, many of our customers have questions about interest rates, building timelines, and home availability. You may fear you’ll miss out on the home of your dreams because interest rates have gone up by the time something is available. Or maybe you’re wondering if you should hold out a bit longer in case rates dip again. To help alleviate your uncertainties and shed some light on mortgage rates today, we asked our preferred lenders the top three questions we are asked most often by our customers. Let’s first introduce our lenders!

Preferred Lenders at Homes By Dickerson

Nate Haines with Robby Oakes Mortgage Team and CIMG Residential Mortgage

Kerry Doyle with BB&T (now Truist Bank)

Phil Jawnywith Townebank Mortgage

Top 3 New Home Mortgage FAQs

Question #1: When are interest rates going to rise?

The short answer is: no one knows. 

Nate Haineswith Robby Oakes Mortgage Team and CIMG Residential Mortgage: 

“I usually tell borrowers that the good and bad news is the same: it’s out of everyone’s control. We thought the world was ending at least once a quarter last year, and we are all still buying and building homes. Rising rates and prices are a sign of much-anticipated economic healing, so there is a tremendous reason to be optimistic! Rates have substantial room to increase before they are anything other than an amazing bargain. If borrowers think back to the spring of 2019, when we were all planning international trips and family holidays, rates were starting to dip below 4% for the first time in several years. After a year we thought we would never see sub-4 rates again, yet here we are.”

Kerry Doyle with BB&T (now Truist Bank):

“I always do my best to explain that, as much as we would like to predict where things will be in 30 days to a year, I can only speculate and give an opinion. There are many economic factors and scenarios in future markets affecting mortgage rates, and I often see rates rise and fall based on mere speculation and predictions by economists and rate forecasting news/media. I’m confident we are in a safe rate zone for a good while, and my current prediction is that rates will remain low for the remainder of 2021 and 2022 and start to trend up in early 2023.”

Question #2: Can I lock in a rate now and build later?

The short answer is: yes! The more complete answer is: yes, but that option comes with a few financial considerations:

Phil Jawnywith Townebank Mortgage:

“As busy as the market is, we still are overcoming a handful of obstacles to help provide some comfort to today’s buyer. We are using extended-rate lock options more and more as interest rates bounce around. Once a buyer understands their options, and feels comfortable and confident, we can help move them forward in today’s market. The most important thing is listening to the consumer and understanding their pain points. Then just simply supply the most cost-effective solution.”

Nate Haineswith Robby Oakes Mortgage Team and CIMG Residential Mortgage:

“We discuss long-term lock solutions, and the pros and cons of that strategy versus the more traditional strategy of a short-term lock. Long-term locks hedge against the risk of a rising rate environment with an up-front fee and a higher-than market rate. While not the perfect solution for everyone, we do see monthly payment-sensitive customers pursue that strategy. Others are more comfortable with risk and the potential for a lower rate.”

Kerry Doyle with BB&T (now Truist Bank):

“We offer a Construction to Permanent (CTP) loan program for buyers who are building but want to take advantage of today’s rates.”

Question #3: Is now a good time to buy a home?

The short and long answers are: yes! With low interest rates, options to lock in your rate, and the ability to custom build the home you’ve always wanted with us, it’s a fantastic time to buy a new home.

For flexible home buyers, it continues to be a great time to buy and buildThe Home of Your Life. For more information, please contact us at 919-205-3404, or feel free to contact one of our preferred lenders directly to discuss your loan options.