Navigating the Landscape of Rising Mortgage Rates
In recent times, mortgage rates have seen an upward trend, a phenomenon that has been widely reported in the media. If you’ve been keeping up with the news, you might have noticed that rates have hit their highest point in over two decades (refer to the graph below):
This information might be disconcerting if you’re contemplating a move. If you’re pondering over whether to postpone your plans, here’s some crucial information.
The Effect of Soaring Mortgage Rates
Urban Institute sheds light on how this is affecting prospective buyers and sellers:
“As mortgage rates climb, monthly housing payments for new purchases also rise. For potential buyers, increased monthly payments can diminish the proportion of affordable homes available… Moreover, higher interest rates result in fewer homes on the market as existing homeowners prefer to retain their homes to maintain their low-interest rate.”
The Future Trajectory of Mortgage Rates
While projections suggest that rates may decrease in the coming months, recent data indicates that rates have been on an upward trajectory. This discrepancy highlights the unpredictability of mortgage rates.
The most prudent advice for your move is this: Don’t attempt to control what’s beyond your control. This includes trying to time the market or predict future mortgage rate trends. As CBS News advises:
“When you’re in the market for a new home, experts generally recommend focusing your search on finding the right home purchase — not on the interest rate environment.”