Fluctuating Mortgage Rates: What They Mean

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Financing

Judith Sutton ABR CRS IDS PMN ASP IAHSP SRES GREEN

Judy@JudithSutton.com   908 803-0472

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CHANGING MORTGAGE RATES AND HOW IT AFFECTS YOU: 2023

 

The 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you have been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.

Here are some helpful facts about your purchasing power that helps show the general relationship between mortgage rates and a typical monthly mortgage payment:

Home Loan Amount:  $325k Fixed Mortgage Interest 7% Monthly Mortgage $2162

Home Loan Amount: $325k Fixed Mortgage Interest 6.5% Monthly Mortgage $2054

Home Loan Amount: $325k Fixed Mortgage Interest 6% Monthly Mortgage $1948

 

  Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.

What This Means for You

You may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and trying to time them for your benefit is tough. Lisa Sturtevant, Housing Economist at Bright MLS, explains:

“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.”

That’s why it’s critical to lean on your expert Real Estate Advisor to explore your mortgage options, understand what impacts mortgage rates, and plan your homebuying budget around today’s volatility. I will also be able to offer advice tailored to your specific situation and goals, so you have what you need to make an informed decision. This is exactly what my job is:  "Providing exceptional quality service...every step of the way..."

Bottom Line

Your ability to buy a home could be impacted by changing mortgage rates. If you’re thinking about making a move, partner with a trusted real estate agent and lender so you have a strong plan in place.  I am here to help.

Adding value for my clients and loving where I live!

Judy@JudithSutton.com

COLDWELL BANKER...GUIDING PEOPLE HOME SINCE 1906 

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