If you’re thinking about buying a home, chances are you have mortgage rates on your mind. You’ve heard how they impact how much you can afford in your monthly mortgage payment, and you want to make sure you’re factoring that in as you plan your move.
The problem is, with all the headlines in the news about rates lately, it can be overwhelming to sort through. Here’s a quick rundown of what you really need to know.
The Latest on Mortgage Rates
Rates have been volatile and the reasons are complicated, because rates are affected by multiple factors, including the broader economy and the job market, the current inflation rate, and decisions made by the Federal Reserve. Lately, all of those factors have come into play, and it’s caused the volatility we’ve seen. As Odeta Kushi, Deputy Chief Economist at First American, explains:
“Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates.”
Professionals Can Help Make Sense of it All
While you could research each of those things to understand how they impact mortgage rates, you can instead rely on the mortgage professional to coach you through market conditions. They’ll focus on giving you a quick summary of any broader trends, what experts say lies ahead, and how it all impacts you.
The following chart gives you an idea of how mortgage rates impact your monthly payment when buying a home. Imagine being able to make a payment between $2,500 and $2,600 (principal and interest only). The green part in the chart shows payments in that range or lower based on varying mortgage rates:
As you can see, even a small shift in rates can impact the loan amount you can afford if you want to stay within that target budget.
It’s tools and visuals like these that show what it actually means for you. You don’t need to be an expert on real estate or mortgage rates, you just need to have someone who is, by your side.
Bottom Line
Have questions about what’s going on in the housing market? Let’s connect so we can take what’s happening right now and figure out what it really means for you.