Buy Now Before Mortgage Rates Continue to Rise

Have you been considering buying a home? With rising mortgage rates, what does that me for you? Mortgage rates have increased two percentage points this year. How does this affect your homeownership plans? 

Currently, buyers react in two ways: they buy before rates climb higher or wait to purchase when rates fall. 

We advise jumping into action rather than waiting to buy if you are financially secure. Here is why:

Historical Data

How do today’s mortgage rates compare to historical data? While higher than the average 30-year fixed rate in recent years, the latest rates are still comparatively low when you look at the bigger picture of where rates have been since 1971. Mark Fleming, Chief Economist at First American, states that:

“. . . historical context is important. An average 30-year, fixed mortgage rate of 5.5 percent is still well below the historical average of nearly 8 percent.”

Today’s mortgage rate still gives you a window of opportunity to lock in a comparatively lower rate than decades past.

Rates Are Climbing Further

Odeta Kushi, Deputy Chief Economist at First American, states:

“. . . ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”

Rates continue to steadily rise this year. As mortgage rates climb, they directly impact a buyer’s monthly mortgage payment. It’ll likely cost you more to buy a home if you wait. 

If you are financially secure, now may be the time to purchase your home rather than later. 

The Mortgage Reports states:

“. . . if you’re on the fence about whether to buy now or wait for a better deal, buying sooner rather than later might be wise. That said, home buying is always a personal decision. Whether you should buy in 2022 depends on your financial situation and the local housing market where you live.”

Take your unique financial situation and the real estate market where you’re looking to purchase.

What’s Right for You?

Consult with a real estate professional and a mortgage loan officer to help guide your decision further. A real estate agent can tell you what’s happening in your local real estate market, and a loan officer can give you tailored advice about qualifying for a mortgage and how much house you can afford.

Speak with professionals in the industry to get their insights before making your homeownership decision.

When it comes to buying a home, there is no one-size-fits-all answer. Based on your unique circumstances, weigh out the pros and cons of waiting to purchase a home or taking action now. Contact me today, and I would love to assist you with all of your real estate needs!