MIDLAND-ODESSA, TX (KWES) - Long-term mortgage rates in the U.S. have hit an all time high since early 2014, but although we have seen a recent spike in rates, local experts say it is a good time to buy.
"Mortgage rates have gone up a full one percent since the election," said First Capital Bank of Texas President, Jay Isaacs.
Isaacs says not to let this make you afraid to buy a home or a big ticket item right now because rates are set to increase even more into the new year.
"What I think most people need to be looking at is not so much the interest rate increase here short term but the plan that the Fed has to increase rates in 2017," said Isaacs.
On the other side, even with recent increases to mortgage rates, local builders are staying busy and making more sales than months prior.
"One community out in Midland in October, we had two sales. We had 10 sales this month so we are seeing a lot more activity. We haven't raised prices but we are seeing a lot more activity," said David Cook, president of Permian Homes.
Raises in home prices could be on the way in 2017 if sales continue like they have and the oil industry picks back up.
"We don't want to raise prices. But if we start getting too many sales, we will have to raise prices to kind of slow it down a little bit so we have a very even flow of construction," said Cook.
The real question is, when is the best time to buy?
"We are seeing some very positive signs with rig counts being up, along with rates being up, that would indicate that now might be the time to make those kinds of purchases," said Isaacs.