Are Higher Mortgage Rates Here To Stay?

Mortgage rates are on the rise, and it's grabbing headlines. Recently, rates hit their highest point in over two decades. It might feel like a gut punch if you're considering a move. Should you delay your plans? Let's break it down.

How Higher Mortgage Rates Impact You

There's no denying that mortgage rates are higher now compared to recent years. When rates rise, it affects home affordability. Simply put, higher rates mean it's more expensive to borrow money for a home purchase. As rates trend upward, your future home loan's monthly mortgage payment also increases.

The Urban Institute provides insight into the current impact on buyers and sellers:

"When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes. Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their homes to keep their low interest rate."

In essence, some people are postponing their plans due to current mortgage rates. But the question is: is that a wise strategy?

Where Will Mortgage Rates Go From Here?

If you're hoping for mortgage rates to drop, you're not alone. Many are in the same boat. However, here's the catch—no one knows when that will happen. Even experts can't predict with certainty.

Forecasts indicate rates may decrease in the coming months, but recent data shows a climb in rates. This discrepancy highlights the unpredictability of mortgage rates.

The best advice for your move is this: don't attempt to control the uncontrollable. This includes trying to time the market or predict future mortgage rate changes. As CBS News advises:

"If you're in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment."

Instead, focus on assembling a team of skilled professionals, including a trusted lender and real estate agent, who can decipher market trends and their implications for you. Whether you're moving due to a job change, to be closer to family, or for another significant life change, the right team can help you achieve your goal, even in the current climate.

Bottom Line

The best advice for your move is clear: don't attempt to control what you can't control, especially mortgage rates. Even the experts can't guarantee their future direction. Instead, concentrate on forming a team of trustworthy professionals who can keep you well-informed. When you're ready to begin the process, let's connect.