Will Mortgage Rates Remain High?

Mortgage rates have been climbing lately, and the media is taking notice. In fact, rates recently hit their highest level in over two decades (see graph below).

If you're planning to move, the recent rise in mortgage rates can be disappointing. But should you delay your plans? Here's what you need to know.

How Higher Mortgage Rates Impact You  

Mortgage rates are higher now than they have been in recent years, and this affects how affordable homes are. The higher the interest rate, the more expensive it is to borrow money to buy a home, because your monthly mortgage payments will be higher.

The Urban Institute has analyzed how rising mortgage rates are affecting buyers and sellers.

“Rising mortgage rates make it more expensive to buy a home, which can price out some potential buyers. It can also discourage existing homeowners from selling their homes, which can reduce the number of homes on the market.”

Some people are delaying their homebuying plans due to high mortgage rates. But is this the right strategy?

 Where Will Mortgage Rates Go from Here? 

Many people are hoping for mortgage rates to drop, but it's impossible to say when that will happen. Even experts can't predict the future with certainty.

Mortgage rates are difficult to predict, as evidenced by the disconnect between forecasts and recent data. While forecasts project rates to fall in the coming months, the latest data shows that rates have been climbing.

Don't try to time the market. You can't control mortgage rates, so focus on what you can control, such as your finances and your readiness to buy a home. As reported by CBS News:

"When you're in the market for a new home, experts generally advise you to prioritize finding the right home for your needs, rather than fixating on the current interest rate climate."

To buy a home in any market, it's important to work with a team of skilled professionals, including a trusted lender and real estate agent. They can explain the current market conditions and help you achieve your homebuying goals, even if you have other major life changes happening.

Bottom Line

Don't try to time the mortgage market. It's impossible to predict where rates will go, so focus on working with a team of trusted professionals who can keep you informed. When you're ready to buy a home, connect with a local real estate agent.