Recent increases in mortgage rates have caught the attention of the media. Headlines have highlighted that rates have reached their highest point in over two decades, which may come as a disappointment if you were planning to make a move. If you’re unsure whether to delay your plans, here’s what you need to know.
Higher mortgage rates have an impact on overall home affordability. As rates rise, borrowing money to purchase a home becomes more expensive. This means that your monthly mortgage payment for your future home loan will also increase. The Urban Institute explains that increased monthly payments can reduce the number of affordable homes available to potential buyers. Additionally, higher interest rates can lead to fewer homes on the market, as existing homeowners are motivated to hold onto their homes to maintain their low interest rates. Consequently, some individuals are choosing to postpone their plans due to the current mortgage rate situation. However, the question remains: is this a wise strategy?
What Will Happen to Mortgage Rates Next?
Everyone is hoping for mortgage rates to drop. They are eagerly waiting for that to happen. Unfortunately, no one can predict when rates will decrease, not even the experts. Forecasts suggest that rates will fall in the coming months, but recent data shows that rates have actually been increasing. This discrepancy highlights the difficulty in accurately predicting mortgage rates.
The best advice for your move is to focus on what you can control and not try to time the market or predict future mortgage rates. As CBS News suggests, it’s more important to concentrate on finding the right home purchase rather than obsessing over the interest rate environment. Instead, assemble a team of knowledgeable professionals, who can provide insights into the market and its implications for you. If you need to move due to job changes, proximity to family, or other significant life events, the right local experts can help you achieve your housing goals.
The Bottom Line
The key advice for your move is to avoid trying to control what you can’t control, especially mortgage rates. Even experts cannot accurately predict their future trajectory. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to begin the process, reach out to a local expert who can guide you through the journey.
What To Do
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