If you’re thinking about buying or selling a home, you’ve probably got mortgage rates on your mind. But how do these changes actually impact you? Let's break it down. Hi, I’m Tara Powell with the RE/MAX NC Coastal Team. Mortgage rates have been trending down recently, and while that sounds like great news for homebuyers, it’s important to know that these rates can be unpredictable.
Factors like the economy, job market, inflation, and decisions by the Federal Reserve all play a part in these changes. The good news is that the expert predict rates will continue going down for the foreseeable future. For example, Odeta Kushi, Deputy Chief Economist at First American, says, “Barring any unforeseen circumstances and resurgence in inflation, lower mortgage rates could be on the horizon, but the journey towards them might be slow and bumpy.” So, what does this mean for you?
When mortgage rates change, even a small shift can significantly impact how much you pay each month for your home loan. Let’s imagine you can afford a monthly payment of $2,600. Depending on the interest rate, the house you can afford to buy would likely fall between $360,000 and $440,000. That’s a huge range! Buying when rates are a little lower can get you into a home that checks more of your boxes and increases your satisfaction with your purchase. Also remember, sometimes you may accept a higher interest rate to get into the perfect house but that doesn’t mean you’re married to it.
As rates go down, you can always refinance to take advantage of the new rates. Understanding how these rates impact your payment can help you make smarter, more informed decisions. Real estate agents like us can help you make sense of what’s happening and what it means for you. We’re here to guide you every step of the way, so you don’t have to go through it alone. If you have questions about the housing market or how to navigate these rate changes, let’s connect.
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