Houston has historically lower rates than the rest of the country. It's been a good run for the past decade on interest rates when you're buying a house. Now, it’s starting to increase.
Stewart Title's chief economist Dr. Ted C. Jones said rates will continue to go up because of a strong economy.
“We have to realize we’ve been living in almost a play land with a lot of money, liquidity out there by the Federal Reserve, and that’s disappearing.
Jones said first time home-buyers need to look at things differently.
“Even today, for the next 10 years, you can get a fixed-rate loan below four-percent. Most of us are not in our houses for 30 years,” said Jones.
He said if you're going to apply for a loan in the next 12 month, make sure you have a strong credit score to get a lower interest rate.
Jones said historically after a disaster, like Hurricane Harvey, there's a boom in the six to 12 months following. He says tens if not hundreds of billions of dollars flow back into the region. He added that typically, they also sell more houses following a disastrous event, too. Last year, set a record with home sales in Houston.
Jones forecasts by the end of the year we'll be between 4.7-to 5.3-percent on 30-year fixed rate loan. He says this is still incredibly affordable. A 15-percent year fixed rate loan 4.125-percent.