Consider your options before waiting for 3% mortgage rates
The Federal Reserve took action to try and lower inflation last year. Mortgage rates quickly increased in response to those initiatives from the all-time lows we saw in 2021, reaching a peak of just over 7% in last October. As a result, prospective buyers purchasing power was reduced, which led to some of them pausing their plans.
If you're a buyer looking to enter the housing market again, that could be fantastic news for you. Any decrease in mortgage rates increases your ability to buy by lowering your anticipated monthly mortgage payment. Therefore, the lower mortgage rates that experts anticipate this year may be exactly what you need to rekindle your desire to buy a home.
While this presents an opportunity for you, keep in mind that rates won't likely return to the historic lows we saw in 2021. Experts agree that this is not the range on which buyers should rely.
In order to have a realistic outlook for this year, it's important to seek the advice of knowledgeable real estate advisors. You might be shocked by the effect that even a slight decrease in mortgage rates has on your spending plan. If you're prepared to purchase a home right away, the current market offers the chance to find your ideal residence, obtain a more affordable mortgage rate, and experience less buyer competition.
Bottom Line The recent decrease in mortgage rates is fantastic news, but waiting for 3% if you're ready to buy now is a mistake. Work with a local real estate professional to investigate your options and discover how the current real estate market affects your objectives.