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Understanding the current state of mortgage rates is critical when it comes to figuring out how much you can afford to spend on a house. But it’s important to remember, that you don’t have to marry it. You can date the rate!
“Interest rates fluctuate,” says Mary Iannaccone, Sales Associate at ERA Justin Realty, “Just because you’re locking into one now doesn’t mean you are locked into it forever. You can always refinance.”
If you’re thinking about buying a house, but are on the fence due to higher interest rates, here is what you need to know.
Historically Low Rates
Mortgage interest rates have been at record lows the past few years. Rates plummeted in 2020 when central banks worldwide implemented measures to stimulate the economy during the Covid 19 pandemic. This allowed more people to buy at affordable rates. “But it is important to remember what we saw then was abnormal circumstances,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “The rates we are seeing now are a return to normalcy. But they are still low in the grand scheme of things, historically.”
Recent Upward Trend
The upward trend we have been seeing lately is a result of inflation but it is also a sign that the global economy is recovering. Mortgage rates have been rising, but that rise has been gradual.
One Size Does Not Fit All
“It’s important to remember that mortgage rates vary from person to person,” says Iannaccone, “It depends on which kind of loan you choose, the length of time you choose to pay it down, your down payment, your credit score. One size does not fit all. You can shop around for the best rate.”
Forecasting Future Rates
While we can’t predict the trajectory of mortgage rates, we can say, historically speaking, what goes up must come down,” says Iannaccone. “And that’s why we say ‘Marry the house, but date the rate.’”
If you’re trying to decide whether to make the leap and buy despite rising mortgage rates, Mary Iannaccone, or any of the experienced real estate professionals at ERA Justin Realty can help you figure it out. Give us a call at 201-939-7500.
