Mortgage Rates and the Impact on Real Estate Affordability
Will Mortgage Rates Impact Real Estate?
When buying a home, mortgage rates are an important factor in affordability if you are financing your home. We have already seen interest rates rise and the expectation is that they will continue to go up. The biggest challenge is as prices and interest rates increase, the less a buyer can afford. According to the sources of Keeping Current Matters, during 2021, mortgage rates have been the lowest point ever recorded, and they stayed low. However they are on the move.
If interest rates increase by 1%, it is like the price adjusting 10%. That is a huge financial impact.
Mortgage interest rates have a significant impact on the overall long-term cost of buying a home with financing. When the rates rise even a little bit of percentage over the next year, it can create an impact on what you will pay each month over the life of your loan.
Here’s a table that shows other expert views and the average of all four projections:
Buying a home before mortgage rates rise even higher will help you take advantage of today’s home buying affordability and save you a lot of money in the long run. If you’re planning to buy or sell a home over the next year, it may be a wise decision to make your move sooner rather than later, before mortgage rates go higher.
Are you ready to buy a home in South Florida? If you want to buy this year before mortgage rates go higher, let’s get together to help you start on your home buying journey.