As the warmer temperatures of spring approach, potential homebuyers may find themselves in a heated battle with rising mortgage rates. Many are feeling concerned about continuously climbing prices and lowered affordability for homes on the market – leaving buyers to wonder if now is really their chance or whether they should wait it out until interest rates drop again. The decision could come down to timing; so explore your options today and make sure you act fast!
The recent uptick in rates has been driven by what’s happening with inflation. Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains:
“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.”
Last week, Freddie Mac reported that the average 30-year fixed mortgage rate has hit a 2021 high of 6.5%. This marks three consecutive weeks in which rates have increased steadily (as seen on the graph). It’s an important reminder to act quickly when looking for more favorable financing options!
Advice for Home Shoppers
With the recent rise in mortgage rates, you may see fewer people searching for a new home – but this could be an opportunity to find and purchase your dream house! Just last week, applications declined by 13.3%, creating space for those who are willing to take advantage of it. Don’t forget that this is just one part of the equation; if you have been wanting to buy a property now might be as good a time as any!
Now’s a great time to start thinking about purchasing a home! Prices remain consistent and competition is low in this market with limited availability of homes. Taking action now means you’ll have an advantage over other buyers when it comes time to make your move.
As mortgage rates have increased recently, prospective home buyers may worry about this trend hindering their plans. On the contrary – rising rates could mean less competition and a great opportunity to take advantage of more favorable conditions in today’s market. Let’s connect to find out how you can seize your perfect chance!