Last week, the average 30-year fixed mortgage rate from Freddie Mac inched up to 3.1%, and experts project rates will continue rising through 2022:

“The 30-year fixed-rate mortgage was 2.9% in the third quarter of 2021. We forecast mortgage rates to increase slightly through the remainder of the year and reach 3.0%, rising to 3.5% for full year 2022.”

If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even as mortgage rates rise.

Taking Time Off Can Be Costly

Mortgage rates play a significant role in your home search. As rates go up, your monthly mortgage payment increases if you’re buying a home, directly affecting how much you can afford. And even the smallest increase can have a large impact on your monthly payment (see chart below): With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of waiting and hoping rates will fall, today’s rates should motivate you to purchase now before rates increase more.

Smart Buyers Can Succeed by Planning Ahead

You can use your newfound motivation to energize your search and plan your next steps accordingly so you’re prepared to act no matter what happens with mortgage rates. One way to do that: take rising rates into consideration as part of your budget.

Danielle Hale, Chief Economist at realtor.com, puts it best, saying:

“Smart buyers should consider calculating a monthly payment not only at today’s rates, but also at rates that are a bit higher so that they won’t be derailed by a sudden upward move. . . .”

You should also be ready to act when you find a home that meets your needs. That means getting pre-approved with a lender so there won’t be any delays when the time arrives.

The best way to prepare is to work with a trusted real estate advisor now. Our team can help you connect with a lender, help you adjust your search based on your budget, and be ready to act quickly when it’s time to make an offer.

Bottom Line

Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Work with our professional team to understand your budget and how you can be prepared to buy your home before rates climb higher.

If you are considering the possibility of a home purchase in the next 6 months, you should call us to connect with the right lender to fit your goals. We are here to help.

Even if you are not planning a real estate purchase or sale soon, I want to help you in any way I can with your present situation. Check out our home value analysis for the specific possibilities on your home, and check out our recent Market Update for your area to give you a general look at what’s happening in your city.

I appreciate you looking us up, and letting us be your information source for anything you may have a question about or need help with. We love people, and we love properties.

My Real Estate Advisor Team Brokered by eXp Realty, LLC
Licensed REALTOR® in Montana and Oregon

(406) 426-1735 Montana Direct
(503) 729-9735 Oregon Direct
michaelj@myreateam.com
MT License: RRE-RBS-REN-94415
OR License: 201229193
US Air Force Veteran | Certified Relocation Specialist | Certified REO Specialist | iBuyer/Express Offers Certified | Certified Real Estate Mentor