Article by Mike Gatlin, Rize Realty Buyers Agent
If you’re planning to buy a home this year, you may have noticed that mortgage rates have started to rise after steadily falling over the winter. But before you hit the pause button on your home search, it’s worth taking a closer look at what’s driving these rate increases and what they could mean for you as a buyer.
According to Joel Kan, Deputy Chief Economist at the Mortgage Bankers Association, the recent uptick in mortgage rates is largely due to concerns about inflation. “Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time,” he explains.
So what does this mean for my clients? While rising rates may make it more expensive to borrow money, they could also create an opportunity for buyers who are willing to stay the course. According to the MBA, mortgage applications declined by 13.3% in just one week as a result of the rate increase. This means that some potential homebuyers may be backing off from their search, which could result in less competition for those who choose to stick with it.
If you’re concerned about rising rates, it’s important to keep in mind that they are still historically low. Plus, there are other factors that could impact your decision to buy, such as your personal financial situation, your timeline for moving, and the availability of homes in your desired area.
Ultimately, the decision to buy a home is a personal one that should be based on a variety of factors, not just the current state of the mortgage market.
So should you buy a home despite rising mortgage rates? The answer depends on your individual circumstances and goals. But if you’re willing to persevere in today’s competitive market, you may find that the uptick in rates creates an opportunity to snag the home you’ve been searching for. If you’re unsure about how rising rates could impact your home buying plans, it’s always a good idea to consult with an experienced Buyers Agent who can provide personalized advice and get creative based on your unique situation.
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