Key Takeaways:
- Recent spikes in mortgage interest rates have impacted the market more than they should
- Today’s housing market is yet full of incredible opportunities for homebuyers
- Our experienced team of dedicated real estate agents will help you seize the best house on the market
The Details on Rising Mortgage Rates
If you’ve been watching the housing market lately, trying to time your move perfectly, you’ve already noticed that mortgage interest rates have increased. The good news is that this rise in interest rates is bringing about some much-needed perspective and stability in the housing market. So let’s review some interesting facts that will help you understand what’s happening and what’s likely to happen to support your decision to become a homeowner.
Do higher mortgage rates mean don’t buy?
Recently, the average 30-year fixed mortgage rate from Freddie Mac inched up to an average of 5%. While news of this increase may have you questioning your decision to become a homeowner, it shouldn’t. Only a few years ago, during the 2010s, mortgage rates averaged between 3.45% to 4.87%—not that far off from today’s average of just over 5%. So if you’ve been thinking of putting your plans on hold, hoping that rates will fall, understand that waiting will only cost you more in the long run. Here’s why: mortgage rates are forecast to continue rising in the year ahead.
How rising mortgage rates impact you
Mortgage rates play a significant role in your home search. As rates go up, they impact how much you’ll pay in your monthly mortgage, affecting how much you can comfortably afford. Even a quarter-point increase can have a major impact on your monthly payment.
With mortgage rates rising, you’ve likely seen your purchasing power impacted already. However, instead of delaying your plans, today’s historically average rates should motivate you to purchase before interest rates increase even more. Timing has never been more critical than in today’s housing market. Understanding current mortgage rates in their proper context should motivate you to energize your search and plan your next steps accordingly.
The best way to prepare is to work with a trusted, dedicated real estate advisor. An agent can connect you to an authorized lender, help you adjust your search based on your budget, and make sure you’re ready to act when it’s time to make an offer quickly.
Lock In Your Rate
Serious buyers understand that waiting now will cost them later and should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Let’s connect today to see what homes are in your budget and prepare you to become a homeowner before rates climb even higher.