Mortgage Rates Are on the Rise!
In the last week, the average 30-year fixed mortgage rate jumped from 3.22% to 3.45%. If we include the most recent jump in interest rates, the current percentage is still lower than average. According to Freddie Mac, 3.45% is the highest it has been in almost two years. With rates continuing to rise, today’s real estate market is near record lows, and it may be time for you to make a move! If you have been in your home for an extended amount of time and haven't recently refinanced, your interest rate may be much higher than today’s average! Yes, this news may come as a shock to you, but it’s better to take advantage of the market now before rates start rising. Many elements play into the idea of purchasing a new home, but now is the time to dig a little deeper.
Sell and Move Up / Downsize
With inventory being so tight, many individuals entering the market are rethinking their needs and redesigning their ideal “dream home”. In this market, you don’t have time to be too picky, and it’s best to stick to your needs. For some, remote work is introducing the need for additional space for offices, and others are looking to make a jump into their first home. Many homebuyers are considering the idea of moving to a lower cost-to-living area or downsizing. The Upper Cumberland itself has witnessed an influx of out-of-state buyers. Inventory is low, but when you decide your needs for your new home, it can be an easy process. Our team has agents who are determined to find you the perfect home. Within our office, we have many clients who saved $10K+ in this market. It’s normal to feel a bit apprehensive when making a move at this time, but we are here to help guide you through every step of the way! Give us a call if you have considered relocating, refinancing, or purchasing a new home. Now is the time to buy!
Rates by the Decade:
Average Mortgage Rate
If the interest rate on your current home is higher than today’s average rate, you should consider taking advantage of this opportunity by making a move and securing a lower rate. Just think, you will have the opportunity to live in a home for a smaller interest rate than your loved ones. Imagine paying nearly 12.10% interest on a $300K home in the 1980s. With a down payment of 10%, your mortgage payment would be near $3K. However, waiting will cause you to miss out on such an amazing opportunity! Wouldn’t you like to have additional spending money per month?
When mortgage rates rise, so does the monthly payment you secure. This means, even the slightest increase in your rate will affect your monthly mortgage payment. All in all, as interest rates increase, you will wind up with fewer homes for your money.
Projections for the year:
Q1 2022: 3.4%
Q2 2022: 3.5%
Q3 2022: 3.6%
Q4 2022: 3.7%
As you see, mortgage rates are estimated to climb throughout the year, but what does that mean for you?
If you are looking to jump into the market to purchase a home, rising mortgage rates should be the incentive to act sooner rather than later. Even though rates are continuously increasing, it’s still a chance to purchase more home for a smaller cost. So, if you were planning to purchase in the year 2022, now is the time to act! Connect with us to start the homebuying process today!