There seems to be a lot of talk in the market over the past few weeks about rising interest rates and how they will effect the housing market. Rates increased for a third straight week, moving above 5% and reaching the second highest level so far this year. Should homebuyers be concerned? According to Jace Stirling, Branch Manager of Winchester Home Loans, there are a few things to look at before getting too worried.

• Interest rates are still at the low end of the spectrum. Even with the past few weeks increases, the market continues to see historically low interest rates.
• The DC market is starting to see signs of a housing recovery. Home prices are low now but there is no guarantee that they won't start increasing in the near future.
• Forecasters suggest that rates won't exceed 6% through 2010 on a 30 year fixed mortgage

If you are thinking about buying a new home and are concerned about rising rates, look into a long term interest rate guarantee program. There is an upfront cost associated with long term interest rate locks but buyers should consider this an insurance policy against increasing interest rates. Long term interest rate lock programs can be purchased for anywhere from 90 days on up to 270 days or more. For more information about rate locks or any type of loan program, contact a representative at Winchester Home Loans.