Mortgage rates can have a big impact on your home-buying power. In 2021, the average 30-year fixed mortgage rate has fluctuated between 6% and 7%. It’s a helpful to understand how this movement impacts your potential monthly payment for a home loan.
The following chart illustrates the relationship between mortgage interest rates and monthly payments:
Even a slight adjustment in interest rates can have substantial results on your monthly payments. With current interest rates averaging between 6 and 7%, there is an obvious procurement power–especially if these figures drop. Such percentages are significant decisions and should be taken into account when considering available options.
What This Means for You
It’s understandable why you may want to put your homebuying plans on hold while you wait to see the direction that mortgage rates will take. However, this can be a risky move as predicting rate fluctuations is no easy task. Lisa Sturtevant, Housing Economist at Bright MLS, gives us more insight into this: “No one knows for sure where rates will go from here, and trying to time them for your benefit is tough.”
It is typically a fool’s errand for a homebuyer to try to time rates in this market…But volatility in mortgage rates right now can have a real impact on buyers’ monthly payments.
When it comes to mortgages and homebuying, it’s important to consult with experienced real estate professionals. This can help understand the current volatility of rates and come up with a suitable budget for your purchase. Additionally, they can provide tailored advice based on your individual situation and desired outcome – which could go a long way in helping you make the right decision.
What We Say…
Your ability to buy a home could be impacted by changing mortgage rates. If you’re thinking about making a move, let’s connect so you have a strong plan in place. Call us at today at 949-400-0987!
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