How To Approach Rising Mortgage Rates as a Buyer
Interest rates are inching up to 5%. That news may have you questioning the timing of your home search.
How Rising Mortgage Rates Impact You
Mortgage rates play a significant role in your home search. As rates rise, your monthly mortgage payment goes up as well. That directly impacts how much you can comfortably afford to pay for your new home. Here's an example of how mortgage rate increases impact your purchasing power:
Knowing this, you may be tempted to put your homebuying plans on hold in hopes that rates will fall. But waiting will only cost you more; mortgage rates are forecasted to continue rising in the year ahead.
Instead of delaying your plans, today’s rates should motivate you to purchase now before rates increase more. Use that motivation to energize your search and plan your next steps accordingly.
A trusted real estate advisor can connect you with a lender with a variety of financing options, help you adjust your search based on your budget, and make sure you’re ready to act quickly when it’s time to make an offer. Should you decide to wait, be prepared to opt for a less expensive home or a larger downpayment.
Bottom Line
Waiting will cost you more. Work with a real estate professional to understand your budget and position yourself for a purchase before rates climb further.
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