Rising Mortgage Rates: Should You Be worried or Seize the Opportunity?
As we head into the spring homebuying season, there has been some concern among potential homebuyers about rising mortgage rates. After falling steadily over the winter, rates have started to climb in recent weeks. This has led some to wonder if now is the right time to buy or if they should hold off until rates come back down.
The reason for the recent uptick in rates has to do with inflation. According to Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), market expectations that inflation will persist have led to the Federal Reserve keeping monetary policy restrictive for a longer time. As a result, mortgage rates have increased across the board, with the most recent weekly average 30-year fixed mortgage rate reported by Freddie Mac at 6.5%. This is the highest point rates have been this year.
While rising mortgage rates may seem like bad news for potential homebuyers, there is actually a silver lining. The MBA reports that mortgage applications declined by 13.3% in just one week, indicating that some potential buyers are pulling back on their search for a new home. If you stay the course and continue your home search, you may face less competition among other buyers, which could be an advantage in a market with so few homes for sale.
So, what should you do if you're thinking about buying a home this year? Don't let rising mortgage rates scare you away. Instead, take advantage of the opportunity to buy the home you've been searching for without as much competition from other buyers.
If you're ready to explore your options in the local market, let's connect today. Our team is here to help you navigate the homebuying process and find the perfect home for you.
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