Buyers shopping for a home this holiday season may be disappointed they missed out on 2% interest rates, but they should be thankful rates are still so low. “Everyone’s talking about how rates are up over 3%,” says Catherine Nimmo of ERA Justin Realty, “but in the grand scheme of things these are still really great rates.” Now that the average 30-year fixed mortgage is above 3%, rising interest rates is one of the biggest topics dominating discussion in the housing market today. Since experts project rates will rise further in the coming months, that conversation isn’t going away any time soon.
So, what do mortgage rates above 3% really mean for homebuyers? Today’s average mortgage rate still gives buyers a great opportunity. Buyers
don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. Today’s rates are lower than the average rates over the last five years. In 2018, the average rate was 4.54%. And today’s rate isn’t just low when compared to recent years. In the 1980s, mortgage rates averaged over 12%. This makes 3% truly outstanding by comparison.
What Does That Mean for You? Being upset that you missed out on rates below 3% is understandable. But it’s important to realize, buying now still makes sense as rates are expected to continue to rise. “Rising rates diminishes your house buying power,” says Catherine, “Meaning, if you wait to buy a house you see today, that same house will cost you more in a few months. The longer you wait, the more it will cost you.” Since rates are expected to continue rising, buying now could save you money in the long run. To lock in a great rate now, give Catherine Nimmo or any of the agents at ERA
Justin a call at 201-939-7500.