Rising Rates Create Opportunity

by Sam Pecor

Mortgage rates have been on the rise in recent weeks after falling over the winter. This has led to concerns among potential homebuyers about affordability, especially as home prices have also been increasing. If you are planning to buy a home this year, you may be wondering if now is the right time to buy or if you should wait until rates come back down.

The increase in rates can be attributed to inflation. Joel Kan, the Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains that the market's expectation of persistent inflation is pushing rates higher, which will require the Federal Reserve to maintain restrictive monetary policy for a longer time.

According to Freddie Mac, the most recent weekly average 30-year fixed mortgage rate is 6.5%, marking the third week in a row that rates have increased. This puts them at the highest point they have been this year.

If You're Able, Take Advantage

If you are considering holding off on your home search because of the increase in rates, you may want to reconsider. This may be the right time to buy the home you have been looking for. The MBA reports that mortgage applications declined by 13.3% in just one week, suggesting that the rise in mortgage rates is leading some potential homebuyers to pull back on their search for a new home.

Staying the course in your home search could result in less competition among other buyers. This is a welcome relief in a market that has so few homes for sale. If you act now, you could take advantage of the opportunity to purchase the home you have been eyeing with fewer competitors.

Let's Connect

While mortgage rates have risen over the last few weeks, delaying your plans to buy a home may not be the best strategy. Instead, take advantage of the current market conditions and act now. Connect with a trusted real estate professional who can help you navigate the process and find the right home for you. With their expertise, you can make a well-informed decision about whether or not now is the right time for you to buy a home.