Home interest rates may increase in 2014

Home interest rates may increase in 2014

Amarillo, TX - 2014 may see an increase in home interest rates.

Soon home interest rates may be going up, Realtors say now is a good time to buy or sell a home in case rates do increase during 2014.

Currently the home interest rate is 4.75% and it may increase to 5.25%.

"I think interest rates are still low, everybody's starting to feel better about the economy, so there's a lot of things going with the interest rates probably going up in 2014, I think it makes sense for people to look at buying now before those rates start to go back up,"Chris Lyons who is a Realtor and Co-Owner of Lyons Realty said.

"On a $100,00 house, on a 30 year loan, that's only going to be about 30 dollars," said Shawna Bachman who is Vice President of Mortgage Loans with Amarillo National Bank.

Lyons Realty says the average price for a home here in Amarillo is around $150,000. And they say last year they saw an increase in the number of homes sold. "Last year 2012 compared to 2013 we rose 6.8 % in volume in close sales, so we had a healthy increase,"Lyons said.

According to Lyons, the number of days a house is on the market is also improving.

During the Recession, homes were staying on the market anywhere from 115 to 120 days, now they are only staying on the market 107 days.

"A lot of people were kind of sitting on the sidelines while the market was a little soft and now I think just a lot of people are ready to get back in and get a house," Lyons explained.

Now is the time to buy or sell a home Lyons tells us, since the holidays are over many people will start to look to make a change in the New Year.

"The Amarillo Association of Realtors is predicting that this year will be an increase in home sales over last year," said Bachman.

No one is sure when or if the interest rates will increase, but everyone we spoke with agrees it's better to buy or sell now because if the rates increase it will most likely be sometime in the near future.