Today’s news is that rates are finally moving up again – and understanding what that might mean for the average home buyer will give you an idea of what you can expect from the housing market in the near future.

They are on the Rise

The big news in the Bay Area is that mortgage rates, finally, on the upswing. After years of economic recession and lower interest rates meant to stimulate the economy, rates in the area are finally moving about the four percent mark. This means that it’s going to be more expensive when you make your mortgage payments, and that the average amount paid by a new home owner is going to be a little bit higher than it was even a few weeks ago.

…and This Might be a Good Thing

The rising mortgage rates might be a good thing for some home buyers, because it seems like one of the few things that can put to rest the rampant real estate speculation in the area. Many of those buying homes over the last few years have been investors, who tend to not only have deeper pockets than the average home owner but who also tend to flip their investments for a much higher price. Higher interest rates, then, might mean the return of somewhat less insane housing prices and the ability for families to make bids on promising properties.

They are Still Fairly Low

As much as one might fear the rising rates, Bay Area mortgage rates really are still fairly low. Average around just over four percent, they are still far below the national average before the real estate bubble burst. This means that it’s still very possible for the average buyer to invest in a home and make reasonable payments – the rising rates just mean that a home has become a bit more of a costly investment, and that carrying costs for investors are now rising to a point where they may ignore some of the properties in which they formerly invested.

You Impact the Rates

It’s also important to remember that the individual buyer greatly impacts those mortgage rates. If you’ve got great credit, you might be able to expect that four percent rate or even a bit below. If your credit is only reasonable, though, you might want to get used to the idea of paying a great deal more. When experts talk about credit rates, they’re usually looking at the average rates for an ideal borrower – the rates that you will find, though, largely depend on your own personal credit history.

You Might Get a Better Deal

That’s why it is so important to look at various lenders to make sure that you are getting the right rate. While the averages are very real, certain lenders might give you a break when others will not. Larger banks, for example, tend to drive a harder bargain on their interest rates – the corporate bottom line always comes first. Some other lenders might be a bit more competitive, giving you a unique chance to get a lower rate. Shopping around is a good idea, and just checking out the rates offered doesn’t mean that you are making a commitment to any given lender.

Bay Area mortgage rates are going up, and that might not be so bad for home buyers. While the cost of a mortgage will go up, housing prices might stabilize because of the movement. What’s important to remember, though, are your own finances – not only will they impact your rates, but they will determine whether or not you are ready to buy a home.