Should buyers wait until Spring/Summer to buy?
I have talked to countless home buyers that say they are “waiting for the market to crash” to purchase their home. Although this sounds like the right choice, the numbers are telling us something different.
Last week, the average 30-year fixed mortgage rate from Freddie Mac jumped from 3.22% to 3.45%. That’s the highest point it’s been in almost two years. And I don’t know about you, but those numbers are still shocking as they are STILL at an all-time low. But the truth is, it wasn’t entirely unexpected. We know rates are expected to climb, and, as the numbers show, this jump in rates is in line with the expectations from Freddie Mac. And what they also indicate is that mortgage rates are projected to continue climbing throughout the year.
But should you be worried about rising mortgage rates? What does that really mean for you?
As rates increase even modestly, they impact your monthly mortgage payment and overall affordability. If you’re looking to buy a home, rising mortgage rates should be an incentive to act sooner rather than later. If you buy a home while rates are in the mid-3s, your monthly mortgage payment will be locked in at that rate for the life of your loan. Buying now is a great way to protect yourself from rising costs and future rate increases while also securing your payment amount for the long term.
Bottom Line:
Mortgage rates are increasing, and they’re forecasted to be even higher by the end of 2022. If you’re planning to buy this year, acting soon may be your most affordable option. Call me today to learn more about the home buying process. Let's face it, now is the time to buy!