Effects of Mortgage Rate Changes

The 30-year fixed mortgage rate has been bouncing around between 5 and 7 percent this year, creating anxiety for homebuyers and significantly impacting buyers' home affordability. It's good to know ahead of time exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.

You may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky as no one knows for sure where rates will go from here, and trying to time them to your benefit is tough. Rate volatility can have a real impact on your monthly mortgage payments. Here's a look at how a .5% and a 1% shift changes your monthly affordability.

It's critical to stay in touch with your lender to understand what impacts mortgage rates, and plan your homebuying budget around today’s prices. A good, experienced lender will also be able to offer advice tailored to your specific situation and goals, so you have what you need to make an informed decision before you go out to look at homes. 

If you're thinking of buying a home, let us know. Not only will we help you find the perfect home for your needs, we will also be happy to provide contact information for some great lenders we've worked with for many years!