At the time of writing, the current average fixed 30-year mortgage rate is above 5% — and forecasters predict that rates will continue to increase in the coming months. If you’re planning to buy a home, this upward trend directly impacts the monthly payment you’ll be able to lock in on your future loan. This means that when it comes to buying, doing so as soon as possible will get you the best deal rather than limiting your purchasing power if you wait and rates rise.
As interest rates increase, you are more likely to exceed your target payment range. REALTOR.com’s chief economist Danielle Hale says,
“Get preapproved with where rates are today, but also consider what would happen if rates were to go up, say, another quarter of a point…know what that would do to your monthly costs and how comfortable you are with that so that if rates do move higher, you already know how you need to adjust in response.”
Whether this motivates you to buy now or you still need some persuading, the best course of action is to work with a trusted real estate advisor to help you navigate the intricacies of the current market. To get started, contact your local Surterre agent today at SurterreProperties.com.
